Payday Loans |

Problem:

Predatory lending has grown exponentially in the united states under the name of payday loans or title loans. States such as Ohio and Arizona have tried to ban payday lenders, unfortunately these predatory lenders were able to find loopholes through changing their name or how to finance loans.

Solutions:

PEW TRUSTS – Payday Lending in America – Policy Solutions

Limit payments to 5% of a borrower’s periodic income

Spread costs evenly over the life of the loan

Guard against harmful repayment or collection practices

Require concise disclosures that reflect both periodic and total costs

Continue to set maximum allowable charges on loans for those with poor credit

Remove pay day lenders from being utility pay stations

Texas Constitution
Code – Finance Code
Chapter – 342 Consumer Loans
Sections:
342.251 Cash Advance
342.251 Alternate Charges
342.253 Maximum Interest Charge for a Loan with Single Repayment
342.301 Maximum Interest Charge
342.602 Disclosures to Military Borrowers

NCSL – Payday Lending State Statutes

City of Houston – Pay Day Loans

Houston Chronicle – City awaits complaints as payday loan rules go into effect

Houston Chronicle – City lists rules for payday lenders but wants lawmakers to act

Texas Observer – Houston City Council Overwhelmingly Passes Payday Loan Ordinance

Houston joins cities regulating payday, title loans

Here come those CFPB payday lending regulations

National Conference of State Legislatures – Payday Lending State Statutes

Pew – State Payday Loan Regulation and Usage Rates

Pew – From Payday to Small Installment Loans

Arizona Daily Sun – Lawmaker: Car title loans worse than payday lenders

CNN – Why car title loans are a bad idea