Driving along Denton Highway, the key thoroughfare of Haltom City, you pass churches, fast-food restaurants, and automotive fix stores. Every now and then amid one other storefronts, vibrant colored indications beckon with promises of вЂњ100 % approvalвЂќ and вЂњEveryday is paydayвЂќ вЂ” tempting invitations from a single of the most extremely pervasive brand new companies in this blue-collar suburb: payday lenders.
The town simply east of Fort Worth houses 16 вЂњcredit access companies,вЂќ the brand new industry term for payday and automobile name loan providers. These businesses arenвЂ™t regulated by Texas usury laws, which limit fees and interest rates unlike banks and savings and loans. So payday loan providers can charge yearly portion prices surpassing 500 per cent, plus charges including $20 to $30 for every single $100 that is borrowed.