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Posts Tagged ‘payday lenders’

The CFPB is almost ready to roll out payday lending regulations

I can’t wait to see what they come up with. Whenever governments start thinking about cracking down on small-dollar, high-interest financial products like payday loans and check cashing services, a shrill cry goes up from the businesses that offer them: You’re just going to hurt the poor folks who need the money! What do you want […]

Another way to squeeze the payday lenders

I wholeheartedly approve of this. The Postal Service (USPS) could spare the most economically vulnerable Americans from dealing with predatory financial companies under a proposal endorsed over the weekend by Sen. Elizabeth Warren (D-MA). “USPS could partner with banks to make a critical difference for millions of Americans who don’t have basic banking services because […]

Abbott outraises Davis on 30 day report

Would have been nice to have done better. Republican Attorney General Greg Abbott outraised Democratic state Sen. Wendy Davis by more than 3-to-1 in the first three weeks in January in the race for governor, according to figures reported by each campaign Monday. The $3.1 million-plus that Abbott raised from Jan. 1 through Jan. 23, […]

How Greg Abbott enabled the payday lenders

The Lone Star Project kicks it off: Abbott’s Green Light to Predatory Lenders Key AG document provided payday lenders a loophole to bilk Texans Greg Abbott’s office issued the key document that has allowed payday lenders to operate outside of Texas usury laws and exploit Texans across our state. A letter issued from the office of the Attorney General carefully […]

The fox has always guarded the henhouse

News item: Rick Perry appointee says something obnoxious and privileged about the people his company fleeces for his fortune. The official who oversees Texas’ consumer watchdog says payday-loan customers — not the lenders — are responsible when the loans trap them in a cycle of debt. William J. White says it’s out of line to […]

Payday lending ordinance passes

In the end, it wasn’t close. The Houston City Council overwhelmingly passed restrictions on payday and auto title lenders Wednesday, avoiding rumored parliamentary maneuvers to delay the vote and calling on the state Legislature to follow suit. The vote was 15-2, with Councilwoman Helena Brown and Councilman James Rodriguez opposed. Rodriguez did not seek to […]

Enforcing a new payday loan ordinance

Mayor Parker’s proposed payday lending ordinance will be up before Council today, though it might wind up being delayed until the new Council is sworn in. It’s not clear yet how the vote might go, but in the meantime it’s worth pondering what the enforcement mechanism for this new law would be. Other cities that […]

Runoff 8 Day Finance Reports

I did not get to looking at the 8 day finance reports for the November election – too many candidates, not enough time. But there was no reason I couldn’t take a gander at the 8 day reports for the runoff. Here’s the summary: Candidate Office Raised Spent Loan On Hand ===================================================== Burks AL2 27,150 […]

Council hears the Mayor’s payday lending ordinance

Reaction was mixed, though it appears likely there is enough support to pass. The proposed ordinance would limit payday loans to 20 percent of a borrower’s gross monthly income and auto title loans to 3 percent of the borrower’s gross annual income or 70 percent of the car’s value, whichever is less. Single-payment payday loans […]

More on the Mayor’s payday lending ordinance

From the Chron story on Mayor Parker’s proposed payday lending ordinance, which is described as having been toughened up from an earlier proposal: Consumer groups had called [City Attorney David] Feldman’s compromise proposal too weak; he said he preferred tougher restrictions but said those were unlikely to pass the Legislature, would invite a lawsuit, and […]

The Mayor’s payday lending proposal

Mayor Parker sure isn’t wasting any time on her last-term agenda. Next up on the list: the payday lending ordinance we’ve been waiting for. With support from other major Texas cities and numerous advocacy groups, Mayor Annise Parker today unveiled proposed regulations for payday lending in Houston. The mayor’s plan establishes minimum business practices for […]

What’s on the agenda for Mayor Parker in her third term

Now that Mayor Parker has been safely re-elected, with a better-than-expected margin, what does she plan to do from here? A triumphant Parker on Tuesday lauded her “decisive” victory but quickly shifted her focus to the coming two years, listing her third-term priorities as jobs, economic development, rebuilding streets and drainage, and financial accountability. “There […]

The cities versus the payday lenders

The Observer writes about representatives from Texas cities getting together to talk about how to fight the scourge of payday lenders. The conference panel on Thursday was an opportunity for city officials from around the state to share advice and encouragement. The panel included Austin City Councilman Bill Spelman and legal advisors from Austin, Denton […]

One thing Wal-Mart could be good for

They could wreak havoc on payday lenders. Raj Date says that with modern data analysis banks could offer payday loans on much less extortionate terms. Felix Salmon retorts that banks don’t actually want to do business with poor people unless they can scrape them for high fees. Otherwise the costs of dealing with the accounts […]

What we missed by not getting a payday lending bill

Better Texas Blog reminds us of what could have been SB 1247, the omnibus reform bill filed by Sen. John Carona … included the ability to repay standards, loan limits, and refinance limitations, among numerous other provisions. According to the Office of Consumer Credit Commissioner (OCCC), the refinance limitations alone in SB 1247 would have […]

Less is more, local legislative edition

Harris County and the city of Houston generally play more defense than offense when the Legislature is in session, so as a rule the fewer bills that get passed that affect them, the better. County and city lobbyists said their efforts to scuttle unfunded mandates and bills that would have handcuffed local governments’ powers largely […]

Payday lending prospects look grim in the House

From the Observer: Late into the night on Monday, the payday loan industry strutted its stuff before a very friendly House committee. The hearing came just a week after the Senate passed a surprisingly tough bill that the industry insists would shut down most of Texas’ 3,400 payday and auto-title storefronts. Even though the legislation […]

Improved payday lending bill passes the Senate

Good news, if it goes anywhere. The Texas Senate approved a bill to regulate short-term lenders on Monday night, a milestone some thought the chamber wouldn’t reach after a personal and divisive floor fight on Thursday. But with the measure’s author, state Sen. John Carona, R-Dallas, calling the highly-altered bill an “ugly baby,” it remains […]

Division over the payday loan bill

Quite a heated little fight in the Senate yesterday. 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 […]

Somewhat improved payday lending bill passes Senate committee

I still don’t think it’s good enough. Breathing new life into a proposal that was doomed by the opposition of consumer groups only last week, a Texas Senate committee approved strengthened legislation Tuesday that imposes restrictions on the payday loan industry that could save desperate Texas consumers some $220 million a year. Sen. John Carona, […]

Payday lending legislation may go nowhere

I can’t say I’m surprised, since Sen. John Carona’s most recent version of a payday reform bill was not met well by advocates for consumers and the poor. Among other things, Carona’s proposal would limit the maximum size of loans to a percentage of the borrower’s monthly income and cap the number of times a […]

It’s good to be a payday lender

Bleah. Earlier this legislative session, a chief of staff for a senator noted that the $4 billion Texas payday and auto-title loan industry would soon grow powerful and lucrative enough that the Texas Legislature would be unable to take it on. That time may have already come. At a legislative hearing this morning, state Sen. […]

City wants the Lege to deal with payday lending

That’s what came out of the presentation to Council on payday lending on Tuesday. Houston leaders say they will wait to see whether the Legislature acts during its current session before voting on their proposal. Mayor Annise Parker has said the industry “cries out for regulation” and called the state’s failure to do so “disgraceful.” […]

Payday and title loan regulation in Houston

From Nonsequiteuse, who got the following email in her inbox: Proposed City of Houston Lending Ordinance Presentation to Council Committee Tuesday, February 5, 2013 The City of Houston Legal Department has proposed new regulations for credit access businesses, commonly referred to as payday loan or title loan institutions. The lending practices employed by these various […]

The payday lenders won’t go without a fight

Where there’s a fight, there’s sure to be lots of money. Payday lenders were big spenders in the most recent Texas political campaigns – contributing more than $1.6 million to state races in the 2012 election cycle and giving most generously to Republican committee members who soon will be reviewing proposed reforms for their industry. […]

I’ll continue to demonize the payday lending industry, thanks

Lawrence Meyers, a shill for the payday lending industry, has a sad. [Loren] Steffy claims in his blog post (“Will lawmakers finally rein in paydayl lenders,” chron.com) that PDLs are “inherently predatory,” yet a loan cannot be predatory if choices exist, and a person enters into a transaction via free will, with terms and pricing […]

The payday lenders’ new tricks

You really need to read Forrest Wilder’s story about the latest scheme by payday lenders to skirt regulation. As serendipity would have it, I had stumbled onto the latest mutant creature in the wild and wooly world of Texas payday lending. “What you’ve come across is really important,” said Ann Baddour of Texas Appleseed, an […]

The Lege will take another crack at payday lending

I’m glad to see this, because the Lege definitely left business unfinished last time. About 83 percent of customers in Beaumont and 75 percent in the Houston and San Antonio metro areas are locked in a loan renewal cycle, latest lender reports show. State Sen. Leticia Van de Putte, D-San Antonio, and state Sen. John […]

Local action on payday lending

Patricia Kilday Hart reports on a promising movement. No one was particularly surprised a year ago when the Texas Legislature failed – once again – to pass meaningful regulation of the payday and auto title loan industries. After all, the folks who charge triple digit interest on loans to society’s most desperately poor had invested […]

Crowdsourcing legislation update

Back in October, I noted an effort by the Texas Senate Committee on Business and Commerce, which is presided over by state Sen. John Carona, to crowdsource its upcoming hearings on payday lending. The Statesman has a report on how things have gone so far. Several times in recent months, the Senate panel and the […]

The CFPB and payday lending

This ought to be good. Picking his first public fight with the banking industry, Washington’s top consumer cop, Richard Cordray, promised on Thursday that his examiners will scrutinize a handful of big banks that make high-cost loans. Inspection of major financial institutions will be part of a broader review of payday lenders, he said at […]

Payday lenders face new regulation

New regulations aimed at curbing the excesses of payday lenders are now in effect, but they will not be the last word on the subject. Proponents of the new regulations passed by lawmakers during the 2011 session say they’re needed because the practice of offering short-term, high-interest loans to consumers has led thousands of Texans […]

Crowdsourcing legislation

Perhaps the wisdom of crowds might help shape better legislation. It’s worth a shot. [Steven] Polunsky is the director of the Texas Senate Committee on Business and Commerce, which is presided over by state Sen. John Carona, R-Dallas. In anticipation of the next legislative session, in 2013, the committee intends to try to crowdsource legislation […]

Watered down payday lending bills pass Senate

It’s inadequate, but it’s the best we’re going to get out of this Legislature. Senators took the plunge into payday lending reform Monday, passing two House bills that bring some oversight to the largely unregulated industry in Texas. Sen. John Carona, R-Dallas, said the legislation represents a “very, very delicate compromise” between consumer groups and […]