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Worried that he couldnt pay his bills, Tillman reluctantly went to The Money Center, a payday loan company with locations in San Antonio and Houston. He took out a 500 loan. The 64-year-old Houstonian doesnt recall the exact terms of the loan, but The Money Centers website currently offers a 500 loan at 650 percent annual interest, or about 150 in fees and interest for a two-week loan. Such terms are common in Texas, where payday and car title lenders are allowed to charge customers unlimited fees.
Like many low-income borrowers, Online tribal cash advance found he couldnt fully pay off the loan when it came due. Instead, the lender offered to roll it over for another two weeks and tack on another round of fees.
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