Burnt Orange Report: Mayor Annise Parker Introduces Consumer Protections Against Abuses By Payday Lenders
November 26, 2013
Joining Austin, Dallas, El Paso, and San Antonio, Houston is on track to become the fifth major city in Texas to pass tighter restrictions on the payday and auto-title loan industry. Mayor Anise Parker’s recently revealed regulations for payday lending reflects the minimum standard business practices for payday lending institutions that have passed in other cities as means to prevent borrowers from being trapped in a cycle of debt.
Many interest rates for payday loans, when including fees, often exceed 500 percent APR. With support from numerous advocacy groups, Mayor Annise Parker joins other municipalities who have taken the initiative in light of inaction from our State Legislature to rein in high-cost, small-dollar loans offered to individuals without credit checks, which frequently preys upon low-income Texans.
Progressive leaders have been working overtime to protect consumers while Republicans have allowed the payday lending industry take between $800 million and $1.1 billion in excess fee charges from Texas families.
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