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Aug 4, 2016 Once they default and are sued, borrowers can have their wages garnished. “A huge number of payday loans go to small claims court,” Medina said. “What we do is review the contract and try to see if all the statutes and regulations were followed.” According to the Legal Aid Center's 2015 Annual Report, 

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Mar 22, 2016 Thus, the lenders are referring to this law when trying to collect defaulted loans and it is at the cost of the taxpayer. Texas law states that theft by check is a class 2 misdemeanor and can be punished by up to 180 days in jail plus fines and court costs. In other words, if you are in default of your payday loan in