League of Women Voters of Texas
Jan 22, 2016 | 1876 views | 2 2 comments | 3 3 recommendations | email to a friend | print


Supports Payday & Auto Title Lending Reform in Texas
Austin, Texas-This week the League of Voters of Texas adopted a position to support policies, legislation, and programs that enable the small dollar loan market in Texas to maintain access to affordable credit while safeguarding consumers. The League believes that payday and auto title loan companies can operate both as a consumer service and a successful business. "This position gives us a new tool to prevent a long-term cycle of debt among Texas consumers in need of immediate cash," said state League President Elaine Wiant.
 
A 2-year study of Payday and Auto Title Loans in Texas by the state League addressed the issue by asking: To what degree should payday and auto title lending be regulated in Texas? How can the small-dollar loan market be regulated so that lenders function both as a consumer service and a successful business? The completed study brief, Facts & Issues: Payday & Auto Title Loans in Texas published by the LWV-Texas Education Fund, presents balanced, factual information from the points of view of the borrowers, lenders, and opposition. As part of the study, local Leagues across the state held public forums to explore the issue and member meetings to reach consensus on policy options.


The League believes that a loan is affordable if the borrower can repay the loan and cover basic expenses without borrowing again or obtaining money from another source. The League supports:
  • Consumer credit regulations that increase restrictions on short-term loans and require lenders to offer affordable loans,
  • Financial education measures that increase the ability of consumers to successfully use small dollar loan financial products, and
  • State and private funding of measures to prevent long-term debt by borrowers in need of immediate cash.
 
In August 2014, 207 companies were licensed as credit access businesses in Texas, operating 3,299 storefronts in 2, 232 cities and towns. During 2014, 1.7 million Texans took out over 2.7 million new payday and auto title loans. The estimated initial cost for a Texan of financing a single payment 2-week $500 payday loan is $127 while that of a single payment 30-day auto title loan is $137. As of January 15th, the Texas Municipal League reported that 31 cities have business ordinances and 15 cities have land-use ordinances that regulate payday and auto title lenders.
 
FOR MORE INFORMATION
The nonpartisan League of Women Voters of Texas has been "educating and agitating" since 1919. The League encourages active and informed civic participation in government and increased understanding of major public policy issues. The League of Women Voters' non-partisan Voters Guide is highly respected and sought after by voters in local and statewide elections in Texas. 
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Mr Isaac
|
June 23, 2016
Hello,

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Thanks,

Mr.Isaac
RobertWheeler
|
January 24, 2016
It is mind boggling that the Women League of Voters, is trying to shut down an industry dominated by Women. Every payday loan store I have been in, employee women. There are a few men here and there, but I would have to say at 95% or more of the people that work in this industry are all women.

The financial sector all together is a place were women thrive. Banks, Tax Preparation, Short Term Lending space (like Payday & Title Loans).

Why would the WLV want to destroy this industry? Is it because they seen the Appleseed and other groups generate big money donations from other groups who want to see the Payday Loan industry go away such as Banks and trial attorneys?

I guess when its all said and done. We should have have 1000's of unemployed hard working mothers in Texas. The borrowers, well they will not have any where to go except the internet lenders operating without regulation behind the curtain of Indian Reservations and their Sovereign Immunity. Those borrowers will be raked over the coals, as the fee's are much much higher, plenty of identity theft going on there as well.

Congratulations!