Texas Observer: State Punishes Payday Lender for Criminalizing Debt
http://www.texasobserver.org/state-punishes-illegal-payday-loan-lender/
The TO doesn't usually get it wrong, but the use of the word "Punishes" in the title should at least appear in quotes as it appears there was no punishment here, but only partial restitution.
Eamon Briggs, assistant general counsel with the Office of Consumer Credit Commissioner, said this was the first time the agency had penalized a company for the practice.
This certainly appears to be a growing trend and were working to make sure our licensees know they cant be making these referrals unless they have specific concrete evidence of fraud, forgery or other criminal conduct, Briggs said. Its simply not permissible or within the intent of this prohibition to allow [payday and title lenders] to make referrals and simply rely on the DA to decide whether or not there are merits to the claim. Were working to make sure everyone knows that this is not an acceptable practice.
Briggs said OCCC asks lenders during an examination process whether they rely on the criminal justice system to collect on bad debt. But people dont always answer that question during the examination process truthfully. The agency relies largely on consumer complaints and information supplied by consumer advocacy groups like Texas Appleseed to catch violations.
Ann Baddour, of Texas Appleseed, said she was pleased that OCCC had taken action against Cash Biz but said the punishment fell short.
more at link, also, see the superb comment by one very astute reader