Tribpedia: Predatory Lenders

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 ...

Federal Rules Could Tame "Wild West" of Texas Payday Lending

Leonard Abbott became trapped in a cycle of debt after taking out a $500 loan from a payday lender. Proposed federal regulations might have prevented him from taking out successive loans. Abbott works at the Texas Capitol as a security guard.
Leonard Abbott became trapped in a cycle of debt after taking out a $500 loan from a payday lender. Proposed federal regulations might have prevented him from taking out successive loans. Abbott works at the Texas Capitol as a security guard.

Proposed federal regulations aim to eliminate payday and auto title lending practices that can leave consumers trapped in a morass of debt. They could have a significant effect in Texas, where 8 percent of people have used payday loans, compared to the national rate of 5.5 percent, and fees are among the highest in the country. 

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.

Thousands Lose Cars Amid Calls for Loan Restrictions

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.