Throughout the last five sessions, state lawmakers have done next to nothing to modify title and payday loans in Texas. Legislators have actually permitted lenders to carry on offering loans for unlimited terms at unlimited prices (often significantly more than 500 per cent APR) for the number that is unlimited of. The one regulation the Texas Legislature were able to pass, in 2011, was a bill requiring the storefronts that are 3,500-odd report data on the loans up to a state agency, any office of credit Commissioner. That’s at least allowed analysts, advocates and journalists to take stock of the industry in Texas. We've got quite a handle that is good its size ($4 billion), its loan amount (3 million transactions in 2013), the fees and interest compensated by borrowers ($1.4 billion), the amount of automobiles repossessed by name lenders (37,649) and plenty more.
The left-leaning Austin think tank Center for Public Policy Priorities found that last year lenders made fewer loans than 2012 but charged significantly more in fees in a report released today. (more…)