Lot new schemes are coming up this December because of Christmas and New Year. But number of payday lenders just use Santa Clause in their advertisement for the sake of their business popularity. On the other hand they have very high APR. The APR charged is around 500 percent. Scrooge commented that payday loans ultimately trap borrowers in infinite loop of debt. Though they provide money in time of emergency, they mint lot of profit from the borrowers.

But on "gratitude list", Austin City Council has taken the most appropriate step. It decided to provide some basic consumer protections as far as same day payday loans are concerned. It has limited the number of loans per borrower. The number of roll over must be reduced as well. The initiative was started by Austin because most of the Austin families were middle class and suffered the most. Aida Ramirez who is a working woman had availed a loan for a nominal amount but she ended up paying up 620 percent APR. She says that loans were “predatory”. She also commented "I knew to a certain point, but I had a plan. I was going to pay it back in two payments, but they don't make it easy."Somehow she managed to pay back the loan in three months. As far as auto title loans are concerned, the fees encounter costs more than $1,000 on a loan of $4,000 loan.

According to the latest news, from January 2009 and March 2011, payday loans as well as auto title industry spent millions of dollars to pass the consumer protection bills. This had great impact on the business. They city had to take such a decision to stop the rapacious payday loan lending practices. Even Texas and Dallas is suffering from the same. Therefore this holiday season, say "no" to predatory lenders in Santa suits — and "yes" to fair, responsible lending in Texas.

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