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Texas Is Throwing People In Jail For Failing To Pay Back Predatory Loans. At least six people have been jailed in Texas over the past two years for owing money on payday loans, according to a damning new analysis of public court records. The economic advocacy group Texas Appleseed found that more than 1,500 debtors have personal loans 3k hit with criminal charges in the state -- even though Texas enacted a law in 2012 explicitly prohibiting lenders from using criminal charges to collect debts.
According to Personal loans 3k review, 1,576 criminal complaints were issued against debtors in eight Texas counties between 2012 and 2014. These complaints were often filed by courts with minimal review and based solely on the payday lender's word and frequently flimsy evidence.
As a result, borrowers have been forced to repay at least 166,000, the group found. Appleseed included this analysis in a Dec.