Payday Loans in Irving, Texas
An OppLoans Guide to Getting The Help (and The Loan) You Need
Life in Irving can be a wonderful thing: access to all the sports, culture, food and fun of living in the big city without all the hassles of actually have to live in the big city. Both safe and quiet, Irving is home to wonderful parks, golf courses, restaurants and natural beauty. But life in Irving can also be very hard for some, especially those lacking in money and resources. One car accident or loss of a job could lead them down the path to financial ruin. Not to mention that they also are less equipped to deal with larger problems like drug addiction, mental illness or elder care. Fortunately, there are resources in Irving and the surrounding area where these people can find help. From personal loans to low-cost healthcare to drug and alcohol rehab clinics to services that help America’s veterans, there is always somewhere that people living in Irving can go to receive assistance.
Borrowing Money in Irving, Texas
Sometimes, all you need to get through a rough patch is a personal loan to pay the expenses. Unfortunately, people with low incomes or poor credit histories might have a hard time finding a lender in Irving that won’t take advantage of them. There many kinds of personal loans like payday, car title and pawnshop loans that could end up putting someone in a worse financial position than when they started. Issuing these kinds of loans is often referred to as predatory lending. These lenders capitalize on a person’s lack of options and trap them in a cycle of debt. In Texas, lenders can even have people thrown in jail for defaulting on certain kinds of loans. Before taking out a personal loan in Irving, it’s a good idea to know what kinds of loans to watch out for and what loans will actually help you get out of a financial jam.
Payday Advance Loans in Irving
These high-interest, short-term loans are convenient but dangerous.
The industry for payday and title loans brings in a little under 6 billion dollars per year in Texas.(1) But just because the business is profitable for the people making the loans doesn’t mean that it’s beneficial for the people getting them.
A payday loan is rarely for more than a few hundred dollars. In order to secure one, usually all the borrower has to do is write a check to the lender that’s post-dated till they receive their next paycheck. The terms on these loans are usually one month or less, with the average being approximately two weeks. The problem with these short payment terms is that they can make for some incredibly high annual percentage rates (APRs). On a 14-day loan in Texas, the APR can sometimes be over 500%, which is way above the APR on a standard personal loan.(2)
When a person isn’t able to pay back their payday loan on time, the lender might offer to roll the loan over. This means that they extend the terms of the loan and charge the borrower an additional fee. This process is how people can get trapped into a cycle of debt. They aren’t able to pay off the high interest in such a short amount of time so they keep rolling the loan over. Eventually, they roll the loan over so many times that they owe way beyond what they can actually repay.
Rollover is banned in many states but it is still legal in Texas. Plus, a legal loophole allows lenders to have a person who defaults on their payday loan thrown in jail.(3) If you have a complaint against a payday lender in Irving or would like more information, contact the Texas Office of Consumer Credit Commissioner at (800) 538-1579 or the Consumer Financial Protection Bureau at (855) 411-2372.
Title Loans in Irving
These loans not only cost a lot of money, they could also cost you your vehicle.
To get a title loan, all a person needs is the title to their car, truck or motorcycle. They hand over the title to the lender, who then gives them a loan based on the value of the vehicle — although the loan is usually for only a fraction of the vehicle’s total value. Once the person repays the loan, the lender returns the car title. If the person isn’t able to pay, then the lender is legally allowed to repossess the vehicle and sell it to recoup their losses.
The problem with title loans is that they come with high interest rates and short repayment terms that make them very difficult to repay and put the borrower’s vehicle at great risk. In Texas, the annual percentage rate (APR) for a title loan can get up to 243%-289%. And with repayment terms that are usually just a month long and rarely longer than 180 days, the borrower often has a very short amount of time to repay a lot of money.
Sometimes, when the borrower can’t repay on time, the lender will roll the loan over. This means that the borrower gets more time to pay the loan back but they are also being charged additional fees and/or interest. This practice often traps borrowers into a cycle of debt and so is banned in many states — though unfortunately not in Texas.
With a loan that is so difficult to repay, putting up a car as collateral probably means that it will get repossessed. If you would like more information or to file a complaint against a title lender in Irving, please contact the Texas Office of Consumer Credit Commissioner at (800) 538-1579 or the Consumer Financial Protection Bureau at (855) 411-2372
Pawn Shops in Irving, Texas
With low dollar amounts and high interest rates, these loans aren’t worth the risk.
There are pawn shops all across Irving and the greater Dallas-Fort Worth area. They can be a wonderful place to shop for fun stuff, like sports memorabilia or antiques. But a lot of that fun stuff was originally collateral in a loan that the borrower failed to repay. Pawn shops may be a great place to shop, but they aren’t such a great place to get a loan.
Because their value is secured by items brought in by customers, pawn shop loans are usually made for only a few hundred dollars. If the borrower can’t repay the loan, the pawn shop gets to keep the valuable item that they brought in and sell it to make up their losses. In Texas, the annual percentage rate (APR) for these loans can get as high as 240%(4) and the maximum term length is only a month. Low dollar amounts, high interest rates and short repayment terms are not usually a great combination. Plus, the borrower stands to lose their stuff if they can’t pay the loan back.
If you would like to lodge a complaint against a pawn shop in Irving or would just like more information, contact the Texas Office of Consumer Credit Commissioner at (800) 538-1579 or the Consumer Financial Protection Bureau at (855) 411-2372
Texas Subprime Reports
- “Pulling Back The Curtain: Shining A Light on Payday and Auto Title Loan Businesses in Texas.” Texas Appleseed. Accessed February 9, 2016. https://www.texasappleseed.org/sites/default/files/Pulling Back the Curtain_0.pdf
- “Texas State Information.” PayDay Loan Consumer Information. Accessed February 9, 2016. https://www.paydayloaninfo.org/state-information/51
- Hicken, Melanie. “In Texas, payday lenders are getting borrowers arrested.” CNN Money. Accessed February 9, 2016. https://money.cnn.com/2015/01/08/pf/payday-lenders-texas/
- “Texas Pawnshop Rate Chart – July 1, 2015 to June 30, 2016 Only.” Texas Office of Consumer Credit Commissioner. Accessed February 9, 2016. https://occc.texas.gov/sites/default/files/uploads/interest/p-rate-16.pdf
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