Lawmakers Advance Predatory Lending Bill

By: Associated Press Email
By: Associated Press Email

Texas lawmakers are advancing a proposal to regulate short-term loans that carry high interest rates.

The state Senate on Monday approved a bill aimed at so-called payday lending. It still must pass the House.

Some of the loans charge in excess of 500 percent interest plus numerous fees.

More than a dozen states ban the loans. Others cap the interest rates. Several Texas cities have adopted local restrictions on the lenders.

Republican Senator John Carona of Dallas has said regulating the loans statewide could save consumers $220 million a year.

But critics in the Legislature have accused Carona of protecting the industry with a bill enshrining only weak restrictions.

Sen. John Whitmire won approval of a contentious amendment that would preserve the right of cities to enact stronger regulations.

Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, Trolling or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to Please provide detailed information.

powered by Disqus
KBTX-TV Channel 3 4141 E. 29th Street Bryan, TX 77802 Phone: (979) 846-7777 Fax: (979) 846-1490 News Fax: (979) 846-1888
Copyright © 2002-2015 - Designed by Gray Digital Media - Powered by Clickability 204262751 -
Gray Television, Inc.