The Lead: There aren’t many consumer victories at the Texas Capitol, but Monday’s debate on payday loan reform was certainly one of them. After […]
Tag Archives: payday loans
After a dramatic false start on Thursday, the big payday loan reform bill—tediously-negotiated by Sen. John Carona (R-Dallas)—easily cleared the Senate. But not before senators agreed to changes that would more or less kill the payday and auto-title industry in Texas.
Carona bluntly pointed senators out for being controlled by payday lender lobbyists before agreeing to hold off the vote for Monday.
An ugly scene erupted in the Texas Senate today, with Sen. John Carona (R-Dallas) suggesting that some of his Republican colleagues were “shills” for the payday loan industry and worrying that the GOP would be seen as “the party that is backed and bankrolled by payday lenders.”
Consumer advocates and Democrats are divided over a Senate bill that would impose light regulations on payday and auto-title lenders.
It’s becoming a perennial pastime at the Texas Capitol. Former speaker of the House Rep. Tom Craddick (R-Midland) files a simple one-page bill that would close a loophole that allows payday and auto-title lenders in Texas to avoid the state’s anti-usury laws and charge unlimited rates; everyone listens politely; and then the bill gets leapfrogged by much more convoluted payday reform legislation.
In a major political maneuver, Governor Perry unveiled his proposal for a $1.6 billion business tax cut at a news conference at the Austin Chamber of Commerce yesterday.
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.
Former legislators don’t die, they come back as lobbyists quicker than you can say cha-ching! Today’s profile in reincarnation is former state Rep. Vicki Truitt, who oversaw a watered-down payday loan reform effort last session. She is now lobbying for Cash America.
Following the Observer’s reporting on a Texas payday lender’s scheme to circumvent state and local rules meant to protect consumers, state regulators issued a stern warning last week.