At the Texas Municipal League’s annual convention in Austin on Thursday, city officials from across the state gathered to encourage each other to pass regulations on payday and auto-title lending, an unregulated sector many consider usurious, if not predatory, and to discuss ways to defend against the industry’s lawsuits.
Tag Archives: auto-title lenders
At a legislative hearing this morning, state Sen. John Carona, the Dallas Republican who’s leading the payday “reform” effort in the Senate, basically said the industry had bought off lawmakers. Carona was defending the latest version of his payday loan legislation, which most advocates derided as unacceptably weak.
Let’s be plain about what makes these businesses so profitable: usury. Structuring a loan to charge $130 in fees per $100 borrowed (that’s the average for a payday loan paid back in installments) is usury, regardless of the political contortions that keep such businesses legal.