Payday loans and car title loans have become popular ways for people with limited economic means and poor credit histories to access cash easily and borrow money.
With payday loans, the borrower writes a post-dated check and faces penalties and criminal charges if the check bounces.
With automobile title loans, someone's vehicle serves as the security for a loan, but if the borrower defaults on the loan, the lender can take that vehicle.
For both options, the fees are quite expensive, borrowers have very few forms of consumer protection. Banks and credit unions can serve as preferable alternatives to the payday and automobile title loan options.
Learn more about the Mastriani Law Firm by visiting http://www.texasdebtdefense.com/.
To learn more about Texas Faith for Fair Lending, visit http://www.texasfaithforfairlending.org/Problems.html.
For the Legal Hotline for Texans guide to payday and automotive title loans, visit http://texaslawhelp.org/files/685E99A9-A3EB-6584-CA74-137E0474AE2C/attachments/D81C8F89-CCB4-C7FF-E6B1-457E412DE342/507411LHT%209_11%20Payday%20Loans_PP.pdf.