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NEWS |
May 12, 1999
AUSTIN, TX -- Following is a statement from Rob Schneider, senior staff attorney for the Southwest Regional Office of Consumers Union, regarding the filing of major lawsuits today by Attorney General John Cornyn against "payday" lenders. Named in the lawsuits are EZ Cash and Quick Cash of the Rio Grande Valley and Cash Today, which has stores statewide.
"Payday lenders violate Texas' long-standing usury prohibitions. Lenders charge outrageous interest rates that push many borrowers to the brink of financial ruin. These loans are nothing but a wolf in sheep's clothing and have been described by consumers caught in its trap as a 'form of slavery.'
"We are very pleased that General Cornyn's office is taking aggressive action today against these businesses that routinely flaunt Texas laws and prey on our most vulnerable consumers. We also commend Consumer Credit Commissioner Leslie Pettijohn for referring this matter to the AG's attention.
"In filing these lawsuits, the Attorney General is sending a clear message to these lenders that their abusive practices no longer will be tolerated in Texas."
For more information, please call Rob Schneider or Rafael Ayuso at (512) 477-4431.
Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.
