Texas Tribune: Outlook Uncertain for Payday Lending Legislation
May 2, 2013
Consumer advocates hoped that 2013 would be the year for a serious effort to rein in the most egregious practices in the payday and auto-title lending industry — financial institutions that offer short-term loans to low-income borrowers at high interest rates. But now, the leading vehicle for regulatory reform, Senate Bill 1247, by state Sen. John Carona, R-Dallas, threatens to stall in a House committee, and the bill’s advocates say they are facing their worst-case scenario. If Carona’s bill fails, reform advocates worry the Legislature could pass one of several other measures that would exempt payday lenders from municipal protections adopted in several Texas cities, including San Antonio, Dallas, Austin and El Paso. Read more here.