The Daily Texan: Texas Legislature Should Reform Auto and Payday Lending
February 8, 2015
If you’ve watched daytime basic cable, you’ve probably seen their commercials. With bright colors and gimmicky sound effects, they’re hard to miss, offering you “$2,000, $3,000, even $5,000 for your auto title!” The flashy marketing behind auto title and payday loans hints at their true target demographic — low-income consumers desperate for money to finish out the month. While some cities in Texas have set limits on the terms of these loans, there is no statewide legislation addressing them, leaving a broad gap for consumers to fall into. It’s time the Texas Legislature addressed the payday and auto title loan industries so consumers won’t have to resort to financial products that are designed to draw them into debt. Read more here.