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Mission & Principles

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The Texas Fair Lending Alliance, founded in 2012, believes in a Texas market that encourages informed financial choices that are successful for both borrowers and lenders. The Alliance is a coalition of more than 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 for Texas payday and auto title loan borrowers 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.

Mission
We believe in a Texas market that encourages informed financial choices that are successful for both lenders and borrowers.

Principles

What is a fair loan?

  1. Fair loans and associated fees must be reasonably priced, which includes 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.