Payday lending could soon become more transparent for borrowers looking for money fast. The House today concurred with the Senate version of a bill that would require payday lenders to disclose interest rates and fees associated with the loans. The bill now moves to the governor for final approval.
Rep. Vicki Truitt, R-Keller, the House author of the bill, gave an example of a man who took out a $1,500 payday loan but ended up paying more than $12,000 to the lender. Truitt said an amendment added by the Senate that requires lenders to provide a comparison of other forms of debt, like long-term loans or credit cards, will ensure there will not be any "guess work” on the part of the borrower.
According to records from the Texas Ethics Commission, companies that offer short-term consumer loans gave Texas officials more than $1.4 million in campaign contributions over the past nine years. Lawmakers say the bill will help bring oversight to companies that take advantage of desperate people.