Texas Fair Lending Alliance

Texas Fair Lending Alliance (TFLA)

The Texas Fair Lending Alliance believes in a Texas market that encourages informed financial choices that are successful for both borrowers and lenders.  The Alliance is a coalition of over 60 organizations and individuals working to transform the Texas payday and auto title loan market from one based on a cycle of debt, to one that thrives on a cycle of success.

The cycle of ongoing debt that is too common in Texas’ payday and auto title loan market hurts the financial stability of working families, seniors, and military families and drains charitable and public resources from our communities. 

Our goal is to strive for a market with fair and transparent payday and auto title loans that are a win for lenders, borrowers, and the Texas economy.

 TFLA Principles:  What is a fair loan?

The principles below will serve as the basis for assessing policy proposals and for determining the coalition position where appropriate.

  1. Fair loans and associated fees must be reasonably priced, which includes some form of fee limits.
  2. Fair loan products are structured for successful repayment.
  3. Fair loans are made based on a realistic assessment of the borrower’s ability to repay, with loan amounts limited to a reasonable share of the borrower’s income.
  4. Fair loans are structured to allow payments to reduce the loan principal without incurring penalty or other fees.
  5. Fair loan terms and conditions are clear, linguistically appropriate, and transparent in all advertising, disclosures, and contracts. 
  6. Fair loans are structured to allow the borrower to build a positive repayment history and credit score.
  7. Fair loan terms are transparently regulated and vigorously enforced.