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Payday Lending: Too Good to Be True?

Recently AARP Texas had the opportunity to talk to Preston White, a Killeen retiree, who wanted to get his daughter money for her family fast. Less than an hour after walking into a payday/auto title loan store, he was able to secure $4,000 using his truck as collateral. White soon realized what the payday/auto title loan staff hadn't made clear: At the end of 30 days, he could either pay off the entire loan (which amounted to more than $5,000 after fees and interest) or pay $1,300 to save his truck from being repossessed for 30 more days. This $1,300 fee would be charged every 30 days until the entire loan, its interest and all fees were paid in full. … Back to Article

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