Texas Tribune: “Law tightens rules on payday, auto title loans”
January 7, 2012
Excerpt: Payday lenders are coming under the microscope.
New laws aimed at curbing predatory lending took effect last week, meaning payday and auto title loan businesses will have to be licensed by the state and post a schedule of fees in a visible place, similar to the overhead menus seen in fast-food restaurants.
Proponents of the new regulations passed by lawmakers during the 2011 session say they’re needed because the practice of offering short-term, high-interest loans to consumers has led thousands of Texans into a cycle of debt and dependency. Lawmakers heard horror stories about consumers being charged interest rates in excess of their initial loans. Read more here >>