Texas Is Throwing People In Jail For Failing To Pay Back Predatory Loans

[Kristi Krock]

In Texas, people are being hit with criminal charges for failing to pay back predatory loans. Predatory loans are cash loans with exorbitant interest rates- largely seen as unfair and deceptive. As people are unable to pay back these loans, many have received notices informing them that they are required to pay a certain price (often many times more than they loaned), or serve prison time. The huge problem with this is that it is against federal law, the Texas constitution, and the state's penal code to use criminal courts as debt collection agencies. Failure to pay back loans is considered a civil matter, not a criminal one. In 2012, there was an additional clarification on which, "lenders are prohibited from pursuing criminal charges against borrowers." Despite this legislation, it has been founf that more than 1,500 Texas residents have recieved criminal charges. 

I chose this topic because I feel as if there is gross injustice on many fronts. Starting with the existence of the predatory lending business and ending with the illegal criminal charges. The article notes how this practice by lenders could be the "tip of the iceberg" in discovering other unlawful or immoral activity that the companies engage in. Due to the fact that this method has been successful in receiving payments from so many, it has created, "a financial incentive to file criminal charges regularly against debtors with alarming regularly -- even if those charges are eventually rightfully dismissed." I wonder how our legislature will continue to work with these companies when they are even now conducting business in a way that is against the grain of our legislature. My hope is that the church can provide healthy alternatives to these companies, causing them to go out of business altogether. 

http://www.huffingtonpost.com/2014/12/29/texas-payday-lending_n_635...