To: The Texas State House and The Texas State Senate
Rein-in predatory practices of payday loan operators
In Texas, the annual Interest rates and fees of Payday loans or auto title loans can equal several times the value of the original loans.
In an article, theeagle.com reports that recently “Texas Rep. Mike Villarreal, D-San Antonio, teamed up with Sen. John Carona, R-Dallas, to file HB 2706 and SB 1247. The identical bills would place many restrictions upon the largely unregulated quick-loan industry, such as limiting the size of a loan based on a consumers' income or vehicle value, limiting the number of times a loan can be refinanced and mandating extended payment plan provisions.”
The article states that “The legislation proposes a number of changes, including requiring notices in Spanish and restricting borrowers to one loan at a time per lender. The bill limits payday loans to 25 percent of the consumer's gross monthly income for those whose annual income is less than 125 percent of the federal poverty level for a family of four, and 35 percent for all other consumers.”
Support bills HB 2706 and SB 1247. Stop predatory loan practices in Texas.
In an article, theeagle.com reports that recently “Texas Rep. Mike Villarreal, D-San Antonio, teamed up with Sen. John Carona, R-Dallas, to file HB 2706 and SB 1247. The identical bills would place many restrictions upon the largely unregulated quick-loan industry, such as limiting the size of a loan based on a consumers' income or vehicle value, limiting the number of times a loan can be refinanced and mandating extended payment plan provisions.”
The article states that “The legislation proposes a number of changes, including requiring notices in Spanish and restricting borrowers to one loan at a time per lender. The bill limits payday loans to 25 percent of the consumer's gross monthly income for those whose annual income is less than 125 percent of the federal poverty level for a family of four, and 35 percent for all other consumers.”
Support bills HB 2706 and SB 1247. Stop predatory loan practices in Texas.
Why is this important?
Living in South Texas, I see dozens of store front payday loan and auto title loan operations taking advantage of the most vulnerable members of the community around me. The borrowers often lose their paychecks, which are their only source of income, or their automobiles, which are needed to get to their employment.