Are there consumer protections in place regarding high-interest loans?

Yes, there are consumer protections in place regarding high-interest loans in Texas. The Texas Finance Code and other state laws provide strict consumer protections to ensure that borrowers are being treated fairly. High-interest loans are called "consumer credit services organizations," or CSOs, and must be licensed by the state. The law requires that CSOs provide specific disclosures to borrowers about the terms of the loan, such as the total finance charge, the annual percentage rate (APR), and the number and amount of payments. CSOs must also disclose other information, such as the borrower’s right to dispute the debt, the borrower’s right to cancel the contract, and the maximum amount the borrower will have to pay. Additionally, Texas law limits the amount of interest a CSO can charge. The interest rate is capped at 10% of the amount the borrower owes. Other restrictions and regulations include a ban on collection of debt by false or misleading means, a ban on unfair contracts, a requirement to report complaints to the state, and a requirement to maintain certain records. Texas has put in place multiple consumer protections to ensure that borrowers are not taken advantage of by CSOs offering high-interest loans. These laws help make sure that borrowers are informed of the terms of their loan, and that they are not charged unfair or exorbitant fees.

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Are there consumer protections in place regarding high-interest loans?

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