Burnt Orange Report: Texas Legislature May Crack Down on Payday Lenders
May 1, 2013
Last week, the Senate passed SB 1247, the Payday Lending Reform Bill, with strong bipartisan support. It was considered tougher than expected, in large part due to amendments passed by State Sen. Wendy Davis. The bill would allow cities to establish payday lending ordinances, impose limits on fees and interest rates, allow civil penalties against payday lenders who try to offer consumers unauthorized products, limit multiple-payment payday loans and auto title loans from extending beyond 180 days or being refinanced, limit the number of credit extensions permitted and impose a “cooling off” period between loans. Right now, Texas is a pretty good place to be if you’re a payday lender. Not so much if you’re a consumer. According to the Dallas Morning News: “The Pew Charitable Trusts classified the Lone Star State as one of 28 permissive states when it comes to payday loan regulations. Pew found that 8 percent of Texas residents use payday loans, above the national average of 5.5 percent.” Read more here.