SAN ANTONIO - Fast cash, payday loans and title loan companies all promise easy money, but are they only creating more debt? One state lawmaker says some of these businesses are taking advantage of people.
Not all of the 'fast cash' businesses are the same; some do follow state regulations when it comes to lending money. Others that call themselves credit service organizations could be charging you huge interest rates.
”I will never do it again," said Billy Saucedo. "I rather sell bottled water on the corner before I go back and try to get a loan from some of these places”.
Saucedo told us he got a loan from a fast cash business, and it ballooned to triple what he first borrowed. “You look at it as a quick fix but, actually, get deeper in debt” Saucedo said.
State Representative Joe Farias says these credit service organizations aren't regulated when it comes to interest rates they can charge on loans. "They can operate without being regulated at the city, state, or federal level” explained Farias.
He wants a cap on interest rates, like the 36% limit that banks and credit cards can charge. “The intent we are caring forward is to have measures, like the banks and credit unions, that regulate them on their lending practices” said Farias.
Again, not all loan places are credit service organizations. If you are looking for a loan, make sure you ask for all restrictions and interest rate information, and ask if they are licensed by the state before you sign on the dotted line.
