KEYETV: Texas Lawmakers Seek to Reign in Payday Lenders

May 1, 2013

The battle over payday and auto title loans is revving up in the Texas legislature. State leaders say new efforts will put in restrictions that could save borrowers millions of dollars in fees. Only, some question their motivations based on the amount of money the industry has invested in Texas lawmakers. “The industry can be characterized in no other way than legalized loan sharking,” said Craig McDonald, executive director of Texans for Public Justice. He characterizes Texas as the “Wild West” for payday and auto title lending. “Not too big to fail, but too big to jail. You just can’t rein it in,” said MacDonald. According to Texas Appleseed, payday and auto title loan storefronts across the state have more than doubled in the past decade.  Read more here.