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The Source: Feds Take On Payday Lending

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Last week, the Consumer Financial Protection Bureau proposed new rules on predatory lenders to stop pay-day and auto-title lending from becoming debt traps. While supportive, a number of consumer-advocate groups say the provisions don't go far enough. Some like the Pew Charitable Trust have called the new rules a "missed opportunity."

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Credit Texas Appleseed
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Texas had 2,532 payday and autolenders according to Texas Appleseed. That is 800 fewer than 2013, when cities - including San Antonio - started passing stricter regulations on the lenders. A new report from Appleseed says that these regulations are having a  positive impact, reducing high fees and decreasing repossessions of vehicles.

Across the state, fees grew by 34 percent the past three years on the $5.8 billion industry. The state of Texas failed to pass reforms last year, despite several pieces of legislation being filed. 

Guests:

  • Ann Baddour, director of the Fair Financial Services Project at Texas Appleseed
  • Alex Horowitz, senior officer with the small-dollar laons project at the Pew Charitable Trusts.
Paul Flahive can be reached at Paul@tpr.org and on Twitter at @paulflahive