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(EMAILWIRE.COM, June 07, 2013 ) San Francisco, CA -- Since 2005, every legislative session has seen bills filed to regulate the payday loan industry. In 2011, two bills to establish licensing requirements and transparency issues successfully passed. Before 2011 in Texas, the industry wasn't licensed or required to inform customers how much they would be charged in fees and interest when they took out a loan.
The result of the 2011 bills has seen more payday loan storefronts and some of the highest fees and effective interest rates in the country, above most states. Payday and auto-title loans are easy to get. Often they are the only loans available for people who have low income or poor credit.
A typical payday loan is between $400 and $500 and is required to be paid back within two weeks. When a borrower can't pay back the loan and fees, they refinance the loan and another, larger, fee is assessed. In Texas, there are no limits on fees or number of refinances so this can happen as many as 20 times or more if the person continually canÂ’t pay back the loan.
For the 2013 session, Sen. John Carona, a chairman of the Senate Business & Commerce Committee in Texas, worked with consumer groups and the industry for months to negotiate Senate Bill 1247 that protects consumers for such high interest rates and fees.
While consumer groups promoted increased protections for borrowers, the payday/auto title loan industriesÂ’ primary goal was to prohibit cities from passing ordinances that regulate their business and preempt the city ordinances that had already passed.
The bill was eventually brought to the Senate floor where it passed with 14 amendments that strengthened consumer protections and disallowed preemption from the industry. The industry, which spent millions of dollars this session on lobbyists and had given more than $2.2 million to legislators, vowed to kill it. And so it did.
Last month, Senate Bill 1247 died in a House committee hearing. It will be another two years before this issue can be raised again. In the meantime, Texans will continue to pay more for loans than borrowers in other states, and the industry will continue to get more greedy, less ethical, and much richer.
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AnonymousPaydayLoansOnline.com
Benjamin Wrights
4157669098
news@postpressrelease.com 
Source: EmailWire.com
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