El Paso Times: Statistics: EP payday-loan rule seems effective

October 3, 2015

The El Paso payday-lending ordinance that was implemented early last year appears to have resulted in lower loan volumes, fees and refinances, according to state data compiled by an advocacy group.

However, an industry group said that in two other Texas cities, local ordinances simply led to increases in online borrowing.

Texas Appleseed is an Austin-based group that advocates tighter controls on payday and auto-title loans. It says the loans often trap borrowers in a cycle of debt at annual interest rates that can exceed 500 percent in Texas, which has perhaps the most lenient payday-lending regulations in the United States.

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