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Still, payday lenders have found courts and prosecutors willing to take cases. The practice threatens to jail people for debt.
Until debtors prisons were banned 180 years ago, Americans could be jailed for years for owing just a few pennies. The costs of incarceration, though minimized by squalid prison conditions, often grossly exceeded the debts, suggesting that punishment was the overriding motive.
In the first two decades of the 19th century, humanitarians confronted authorities in several states with a litany of abuses, and the public came to see the practice of jailing debtors as repugnant. New York was the first state to abolish incarceration for debt.
Other states followed, and Congress passed a federal statute banning the practice in 1833. The Republic of Texas Constitution, drafted just a few years later, in 1836, establishing Texas as an independent nation, declared, No person shall be imprisoned for debt in consequence of inability to pay. In some rbs personal loan top up, Texas law tilts strongly toward debtors rights.