The Source: Feds Take On Payday Lending
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."
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.
- 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.