Texas And Payday Loans Do Not Go Together!

By Shawn Lee Martin

texas and payday loansMany 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.

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Legal Action

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!

JudgeBut 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!

The Law

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

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.

Problem solved!

14 thoughts on “Texas And Payday Loans Do Not Go Together!”

  1. I am being threatened by a pay day loan from 2011 and its actually a third party company trying to collect the debt, can i go to jail and can they help me with a payment plan since its a third party collecting for the pay day loan company?

  2. I have never had to use a payday loan, but im sure when times are hard, it is very easy to want to…. it is unfortunate for people in texas that they still charge people for unpaid loans even though it is supposed to be illegal too. They will always find a loophole, just like you did! Consolidating it is probably your best bet in these situations, nothing like spending time in jail…
    Thank you for this post and i hop it hits more eyes before they get caught up in some trouble!

    1. Hi, Jesse!

      Thanks for stopping by and checking us out!

      Yes, it is no fun worrying about going to jail and that is why we are here, to help people avoid that!


  3. wow! Good to know…and, I’m glad I don’t live in Texas! ha ha Let me ask this, though: Is the Payday Loan Repayment Plan available across the country, or was this designed to just protect Texans? So, this plan doesn’t let the borrower off the hook, right? It just helps them to get it under control and reduces the amount of interest owed, right? Interesting. Thanks for the info!

    1. Hi, Barb!

      The repayment plan is good throughout the USA and is set up to reduce the amount owed considerably, sometimes up to 75% savings.

      The borrower must still replay the negotiated balance off and that is set up on an affordable payment plan.

      Thanks for stopping by and remember we are here for anyone who needs hwelp in the USA with this kind of debt!


  4. You’re an expert of all those legal themes, I learning so many things for my classes of from your website, thanks for sharing this information, totally we need more websites like yours if I have a question where I can send you and email? Because I want to make you a couple questions. Thanks

  5. Very interesting and informative site you have put together. I was not really aware of that issue going on in Tx to the extent of people being sent to jail. Wow I guess for some people they can no longer borrow money without the intention of paying back. At the same time situations are all different and getting thrown in jail might be pushing it a bit on a payday loan…I don’t know I’m not sure. One thing is for sure…you are doing a good thing with this site by offering information and help.

  6. Good morning and thanks for the information on payday loans. I know that if you contact the collection agency directly you can often get them to work with you on a reasonable repayment schedule and often reduce the total amount due. Didn’t know Texas was sending folks to jail for this, that seems to be immoral if not illegal.
    Thanks again for the information.

    1. Hi, Susan!

      Glad we could send some information your way!

      Many people are getting caught up by the payday loan companies using loopholes in the laws and it is unfortunate.

      Most payday loan companies will not negotiate with the borrowers in any way and that too is unfortunate.

      And that is why we are here, to open that door for everyone who needs help!

      Thanks for stopping by!


  7. I can’t believe people were going to jail for defaulting on payday loans. That is terrible!! This is a very informative and helpful post. I despise payday loans. I feel like they pray on those that are already struggling and make things even worse for them. Once you are in a hole, you need help getting out, not digging the hole even deeper!

    1. Hi, Illyssa!

      Maybe we can makes difference just by getting the word out on how horrible payday loan debt can be.

      Thanks for stoping by!


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