Tribpedia: Predatory Lenders

Tribpedia

Predatory or "payday" lenders describe companies that offer short-term, high-interest loans in Texas, often to low-income citizens. There are no limits on the fees the companies can charge, and no restrictions on how the companies attempt to collect their debts. Lenders make millions off the charges that pile up as consumers, unable to keep up with the growing costs, repeatedly ...

Read More...

Thousands Lose Cars Amid Calls for Loan Restrictions

Tiffany Richardson took out a short-term loan against a Nissan Altima and another against a Toyota 4Runner. Both vehicles were repossessed.
Tiffany Richardson took out a short-term loan against a Nissan Altima and another against a Toyota 4Runner. Both vehicles were repossessed.

State leaders in business-friendly Texas have been reluctant to put new limits on any industry, and a lack of regulation is being acutely felt by the low-income borrowers to whom the payday and auto-title lending industry most often caters. 

Rep. Mike Villarreal (D-San Antonio) talks about changing Texas demographics at the LBJ School on February 28, 2011
Rep. Mike Villarreal (D-San Antonio) talks about changing Texas demographics at the LBJ School on February 28, 2011

Villarreal Urges Action on Payday Lending

Payday lenders could see the expansion of local lending regulations across the state, lawmakers warned at a press conference on Wednesday, if a bill that would that would create statewide regulations fails.

Texas Cities Take Action to Regulate Payday Lenders

Across Texas, city councils are beginning to take the regulation of payday and auto title lenders into their own hands. But lobbyists, who were instrumental in blocking the passage of state-level lender regulations last year, have also been active in opposing municipal ordinances. 

Texas Payday Lenders Face New Rules, Scrutiny

Payday lenders are about to come under the microscope — the result of new laws designed to curb predatory lending and prevent a cycle of "debt and dependency." It could be just the beginning of regulation for an industry opponents say has run amok with promises of quick money in exchange for exorbitant rates.