Why is Texas paying out more than $1.3 billion in payday loans?
There are more than 1.2 million payday loans in Texas, and many borrowers get their loans at the same time they get their payday, according to the Texas Department of Financial Institutions.
But according to data compiled by the Texas Commission on Consumer Protection, Texas has paid out more payday loans than any other state in the country, with a total outstanding of nearly $1 billion.
The average payday loan was $400, and the average borrower made $30,000 in the last year, according the Texas Consumer Credit Council.
Some of the top payday loan providers in Texas include:Aeropostale Financial Services, which is based in Arlington, operates more than 800 payday loan branches in Texas.
AEROPOSTALE, TX – AUGUST 15: Employees wait in line at the entrance of the AEROSPORTALE branch at the Austin-area mall on August 15, 2019 in Austin, Texas.
The AEROSTALE branch was among the first to start accepting payday loans.
(Photo by Justin Sullivan/Getty Images)Aerostale’s payday loan service is a combination of a loan guarantee, a service fee, and a loan modification fee.
For most customers, the service fee is $2.00, and for some, it’s even higher, with some states requiring a $20.00 modification fee, according in the Texas commission’s data.
Payday loans are a growing industry, according, and are a big factor in helping the state keep its credit rating.
According to data from the Texas State Bankruptcy Board, the total number of payday loan borrowers in Texas is expected to hit 8.7 million by the end of 2021.
The number of Texas payday loan loans peaked in the early 1990s, but the number has declined as more people are able to refinance their loans.
Texas was the second state to pass a law that requires payday lenders to offer the same loans at lower interest rates, and in 2015, the state increased the amount of loans they offer to borrowers by $250.
In 2017, the Texas Supreme Court struck down a similar law that required payday lenders in the state to offer loans at higher interest rates than their competitors.
The commission reported that the average payday loans paid out in Texas were worth $1,732, but that the median loan was valued at $3,000.
One of the biggest drivers of the payday loan industry is a growing number of consumers who are in the debt trap, according Mark Johnson, CEO of Texas Equitable Bank.
“These are the people that are going to get caught up in the cycle of debt and don’t know where they are going and what they are getting out of it,” Johnson said.
“If they’re not getting the best deal on their loans, then they’re going to go to a payday lender that is the worst.”
Texas’s financial aid department said in a statement that “Texas is one of only a handful of states that allows payday loans to be used as a form of repayment.”
In the state, borrowers with a balance of $150 or less are not eligible for aid and can take a payday loan instead.
The agency also said that while the agency offers an array of services to help borrowers who are struggling with their credit, its loan modification program is a good way to help people who are looking to refile a loan.