Legal Question in Credit and Debt Law in Texas

usury fees

I borrowed $500 on line from a firm and they call it a Pay Day Loan. I gave the firm automatic Withdrawal priviledges from my check account. My problem is that they withdraw $85 per week and its all interest. To make matters worse they withdraw it before my pay check reaches the bank and so the bank charges me a $30 penalty for being overdrawn. Is there a law in TX to prevent them from charging this high interest? Thankyou.


Asked on 6/15/08, 11:06 am

1 Answer from Attorneys
Donald McLeaish McLeaish&Associates;, P.C.

Re: usury fees

Not that I know of...you may consider closing the account and getting enough to pay the loan..hopefully you did not write postdated checks

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Answered on 6/15/08, 1:29 pm


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