Texas Observer: Payday Loan Industry Divides and Conquers at Capitol
April 16, 2013
Last year, payday and auto-title lenders stuck Texans with more than $1.25 billion in fees on loans carrying interest rates that frequently top 500 percent. Churches, charities, consumer advocates and borrowers have increasingly expressed alarm about the destructive power of virtually unregulated short-term loans. Advocates came to the Legislature this session hoping to crack down on what they characterize as an out-of-control industry. Now, the fair lending coalition is split. Advocates are bitterly divided over legislation in the Texas Senate. Read more here.