If you live in the South Oak section of Mineral Wells, there’s a good chance you’ve heard Jerry Taylor walking through your neighborhood.
“It’s a Harley, it’s supposed to be loud,” he said, speaking over his roaring motorcycle.
He is colorful and enjoys life.
He spends a lot of time on his Harley, and when she needs a last minute repair, he doesn’t hesitate to take out a payday loan.
Taylor didn’t pay attention to the exact terms he agreed to and found out the hard way.
“One time I was a day late. I called them and told them ahead of time. They said there was no problem. I walked in to make this payment, the next thing that I know, my payments have been ‘sppppt’, ”he said, gesturing with his hands.
This missed payment changed its conditions. Now, every month when he makes a payment of $ 145, less than $ 1 is used to pay off the loan. The remaining $ 144 is all fees and funding.
“Whoever regulates this has to check that out, because it’s a highway robbery,” Taylor said.
They are checking.
The Consumer Financial Protection Bureau recently finalized a new rule that prohibits lenders from issuing loans with fees so high that the customer cannot afford to repay them.
The rules set specific short payment schedules, and lenders should make sure you can afford them.
It was designed to keep reputable payday loan companies while eliminating the ones that make loans difficult for people like Taylor to repay.
“I went to several who told me we couldn’t give you a payday loan because you weren’t pledging enough. I’m going to this one, they tell me, yes of course no problem. Now I know why, “Taylor said.
The new rules don’t help people like Taylor who already have loans outstanding. It will come into effect for new loans next year.
In the meantime, make sure you understand the terms of any loan you take out now.