By Shawn Lee Martin
Many people think of Texas and the money state and thus, they think why would Texas and payday loans even be in the same sentence?
Believe me when I tell you people are the same all over the country, even in Texas. but it has grown even darker in this state.
People run into financial trouble everywhere and when they do they usually end up turning to these high-interest short term loans that never really end up being short term.
Well, Texas has taken it a bit further.
People were actually going to jail for failure to pay their Payday Loans back in 2014 and it does not look like it has gotten any better there.
This comes as a huge surprise as back in 2012 Texas passed a law prohibiting lenders to be using any kind of criminal threats or charges when collecting debts.
Well, the law is pretty much ignored by these lenders and they actually prosecuted up to 15 people for nonpayment back in 2012 and they all ended up with jial time!
Debtors prisons were supposed to be outlawed in 1833 by federal law according to Wikipedia, but someone forgot to tell Texas!
But for some reason, 1576 people have been brought up on charges of non-payment of their payday loans from 2012 to 2014 alone.
Judges would make these decisions strictly on the lenders’ stories and give to leeway at all to the borrowers.
This is not how our court system is designed to work but for some reason, it is still happening in Texas and people are getting fed up with it!
It is against federal law to use the courts to collect civil debts and payday loans are considered civil debts by the courts. But still, the courts in Texas keep filing charges and hearing cases of defaulted payday loan customers!
But still, the courts in Texas keep filing charges and hearing cases of defaulted payday loan customers!
After a bit of research, we have found the loophole these lenders are using to get by the law.
It is illegal to issue a worthless check or checking account number when paying debt and postdated checks are the backbone of the payday loan industry.
Thus, the lenders are referring to this law when trying to collect defaulted loans and it is at the cost of the taxpayer.
Texas law states that theft by check is a class 2 misdemeanor and can be punished by up to 180 days in jail plus fines and court costs.
In other words, if you are in default of your payday loan in Texas and you are taken to court, your tax dollars are paying for your prosecution!
Sounds pretty silly but it is true.
We are prosecuting the poor for being poor in Texas!
This is also happening in other states around the country and one of our missions is to get this word out and offer a solution for anyone caught up in this mess!
The solution is simple and easy to find.
Just contact a payday loan repayment company and get your payday loan debt consolidated into one affordable bi-monthly or monthly payment through their Payday Loan Repayment Plan.
This will stop all legal collection activity and interest owed can be reduced up to 75%!!
This is something the payday loan companies will not tell you.
When you go to court for the check and you have an arrangement in place to take care of the money owed the judges will more than likely dismiss the bad check charges.
Thus, you will have your payday loan debt under control and on its way out the door, and your legal issues have been solved!
Texas payday loan companies have found a loophole to use in collecting payday loan debts and they are using it every day.
We have found a solution for payday loan borrowers who may face court dates now or in the future by setting them up on a Payday Loan Repayment Plan.
The borrower pays off the reduced payday loan debt and moves on with their lives and the courts dismiss the check charges due to the payment of the payday loan debt.