Houston officials laid down proposed restrictions on payday and car name lenders Tuesday, drawing support that is tepid the industry and frustration from advocates whom state the principles will never stop the spiral of financial obligation for most low earnings borrowers.
The Texas Legislature discussed regulating payday lending in 2011, but came across stiff industry opposition making progress that is little. Ever since then, Dallas, Austin, San Antonio and El Paso have actually adopted laws. Dallas and Austin have already been sued over their limitations.
Houston leaders state they are going to wait to see if the Legislature functions during its current session before voting on their proposition. Mayor Annise Parker has stated the industry “cries down for regulation” and called their state’s failure to do this “disgraceful.”
“Restrictive legislation is needed seriously to curtail the practices that are abusive is found in the industry, and also to lower the period of debt that is imposed in the economically disadvantaged,” City Attorney David Feldman stated. “Having said that, it must be recognized that pay day loans are usually the only supply of credit that these same customers get access to.