Everything’s Bigger in Texas, Even Payday Loan Rates
527% average interest rate is among highest in the nation
Payday loans are a bad deal for borrowers but big money for the unscrupulous legalized loan sharks who make them.
The Dallas Morning News reports that Texas remains one of the worst states in the nation to get a payday loan — or, among the most profitable places to set up shop as a payday predator.
The average consumer in Texas who took out a payday loan was required to pay 527% of the loan amount in the fees and interest over a four-month installment plan. The only states with higher average rates were Utah, Nevada and Idaho.
Washington, D.C., and 16 states have already enacted caps on loan rates charged by payday lenders.
Meanwhile, if you want to borrow $500 from a payday lender in Texas, you need to be ready to pay back $1145.
Ouch!
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