Payday Borrowing

Every session since 2005, when the payday industry found a loophole to escape regulation, numerous bills have been filed to regulate payday lenders and curb excessive interest rates and fees. Every session these bills die under intense lobbying from the payday lending industry. This session a handful of legislators will do battle once again with the industry and its powerful lobbyists.


Number of payday
lenders in Texas


APR Range of what
payday lenders charge on short-term loans

Above 10%

APR What the Texas Constitution considers “usurious”


Annual amount Texans pay in fees, and interest on loans


Average amount repaid in fees and interest on
a $325 loan

Source: Center for Public Policy Priorities

Do you think free access to journalism like this is important?
The Texas Observer depends on support from its members to keep telling stories like the one you are reading now. This fall we're looking for 200 more sustaining members—people like you who can give us as little as $0.99 per month. Your membership means we can continue shedding light on issues that might otherwise go unreported. Can we count on you?

You May Also Like: