As easy and quick loans result, borrowers have been forced to repay at least 166,000, the group found. Appleseed included this analysis in a Dec. 17 letter sent to the Consumer Financial Protection Bureau, the Texas attorney general's office and several other government entities.
It wasn't supposed to be this way. Using criminal courts as debt collection agencies is against federal law, the Texas constitution and the states penal code. To clarify the state law, in 2012 the Texas legislature passed legislation that explicitly describes the circumstances under which lenders are prohibited from pursuing criminal charges against borrowers.
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