Signs offering promises of “quick cash” can be seen all over Texas. So-called payday lenders offer short-term loans under $700, but those loans have been criticized for interest rates that can climb to 500 percent.
For some customers, taking one on leaves them in a never-ending cycle of debt. It’s controversial, and the practice is actually banned in 12 states.
Recently, it’s become an issue in this year’s governor’s race.
The topic was kicked up after the chairman of the Texas Finance Commission – William White – made comments to the El Paso Times suggesting payday lenders should be able to charge whatever fees they want. Previously unheard of, White’s comments put him in the spotlight among payday loan regulation advocates.