Texas Faith for Fair Lending
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Texas Legislative Action

During the 82nd legislative session, your voices were heard and people of faith pushed the Texas Legislature to vote their conscious.  Texas now has two laws that create a regulatory structure and licensing procedure for payday and auto title lenders:

HB 2592 by Vicki Truitt (Southlake) and John Carona (Dallas)

HB 2592 provides for notice and disclosures for consumers to enable consumers to make informed choices. This bill is intended to allow easier comparison of the costs of different payday and auto title loan terms by comparing the cost of these loans with other, similar, short-term credit products.

HB 2594 by Vicki Truitt (Southlake) and John Carona (Dallas)

HB 2594 gives, for the first time, licensing, oversight, examination and enforcement authority to the Office of Consumer Credit Commissioner for those lenders operating as CSOs.  The bill requires quarterly reporting to OCCC of important data and allows for enforcement of fair debt collections practices as well as federal military lending laws.

Though these bills are a first step, neither of them address the “cycle of debt” which traps many borrowers in a pattern of only paying fees, never reducing the amount owed. HB 2593, which was intended to attack this problem, died in the House. Sen. Carona has agreed to conduct an interim study and return next session with legislation to work on consumer advocate concerns.

None of the bills would have put a limit on the outrageous, usurious rates these lenders charge, frequently well over 500% APR.

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