Driving along Denton Highway, the key thoroughfare of Haltom City, you pass churches, fast-food restaurants, and repair that is automotive. Every now and then amid one other storefronts, vibrant colored indications beckon with promises of “100 % approval” and “Everyday is payday” — tempting invitations from a single of the very pervasive brand brand new companies in this blue-collar suburb: payday lenders.

The town simply east of Fort Worth houses 16 “credit access companies,” the brand new industry term for payday and auto name loan providers. Unlike banking institutions and cost savings and loans, these lenders aren’t managed by Texas usury legislation, which restrict charges and rates of interest. So payday loan providers can charge percentage that is annual surpassing 500 %, plus costs which range from $20 to $30 for every single $100 this is certainly borrowed.

Due to the fact recession has deepened and dragged in, the lure of these loan providers becomes also more powerful for those who see few alternative methods away from monetary predicaments. And where as soon as such companies used to cluster into the poorer areas of big towns and cities, these are typically now securely planted too in smaller towns, specially less affluent suburbs.

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