Texas lawmakers seek to expand payday loan regulation

In January, Texas enacted new regulations for the payday loan industry. In order to remain in compliance with the laws, lending houses have to make interest rates and fees more readily available to applicants before taking out a loan. According to the Texas Tribune, Rob Norcross, a spokesman for the Consumer Service Alliance of Texas, said these rules were good for the industry because "[y]ou want people to meet certain standards to operate these businesses."

Now state legislators are considering amendments that include fee limits. There are no current regulations in place to cap the amount a payday lender can charge per transaction. The Center for Public Policy Priorities' senior analyst Don Baylor noted that Texas-based lenders charge more than those in nearby states, including Oklahoma and Alabama. As a result, some applicants have defaulted on their loans, which has sometimes forced them refinance the loan and pay more in the long run.

CASH 1's policies are in accordance with state laws. The lender informs loan applicants of all charges before agreeing to terms and promotes transparency in its policies to help consumers make informed decisions while seeking financial help. 


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