East Texas Review: Push to rein in predatory payday and auto title lending gains momentum
July 2, 2014
In an effort to rein in abusive practices by payday and auto title loan businesses, Midland is the latest municipality to pass Texas’ unified ordinance, which sets basic affordability standards for payday and auto title loans and helps borrowers avoid a never-ending cycle of debt.
“Our state has some of the most lax oversight of payday and auto title lending in the country, and as a result, Texans are paying nearly twice the fees of borrowers in some other states,” said State Rep. Tom Craddick. “I commend the cities that are providing relief to struggling families. My hope is that the efforts of these cities, including my hometown of Midland, will help spur our state to adopt meaningful statewide reform.”
Eighteen cities in Texas have passed the unified ordinance, covering 42 percent of the payday and auto title loan locations in the state. Midland passed their ordinance on June 17. Texas Appleseed, a nonprofit that promotes social and economic justice, has been working in partnership with statewide and community organizations to support the push for payday and auto title lending reform.
“Covering over 7 million Texans, more than a quarter of the population of Texas, is a huge milestone for our state,” said Ann Baddour, senior policy analyst with Texas Appleseed. Read more here.