22
Aug

Texas CAB-CSO Payday Loan Model Under Attack

Texan consumer groups focus on upcoming CAB/CSO credit access businesses such as payday lenders to make their views known to Texas Sunset Commission

The Texas Fair Lending Alliance urged Texans to contact the Sunset Commission before Aug. 29, when the group meets regarding the Texas OCCC. This  office oversees licensing for Texas credit access businesses [CAB – CSO], including payday and auto-title lenders.

The Texas Fair Lending Alliance is a coalition of 60 consumer organizations.

“Texas Appleseed and United Ways of Texas referred to “Sunset review”—a process established to hold state agencies accountable by periodically evaluating whether they should continue to exist—offers opportunities to strengthen consumer protection against what they consider predatory lending.”

Texas CAB’s and their customers must prepare to support the continued existence of appropriate regulations to assure continued access to small dollar loans in Texas for those borrowers with no where else to turn!

Already, approximately 45 cities have adopted city ordinances placing limits on the number of times payday loans can be rolled over and paid in installments, and to require that proceeds from any renewal payments apply toward reducing the original loan principal.

The Texas Legislature should seek to preempt city ordinances and allow the expansion of new, competitive loan products and services. When you need $300 to fix your car in order to keep your job, where do you go for fast, no-hassle cash?

Already, online payday loan lenders such as Elevate, Avant, Speedy… are taking away market share and jobs from local, established Texas store-front lenders. This reality hurts commercial landlords and tax revenue as well.

Here come the online tribal lenders.

Shut down the loan stores helping consumers who reside in Texas and the tribe lending entities [TLE] will continue to take market share as well. I get a dozen calls every day from consumers who need an immediate loan – that’s CASH in their hands – NOW. They do not want to wait 2 – 5 days for their payday loan proceeds to “appear” in their bank account. Online lenders are still slow and clunky.

The Texas Sunset Commission includes five state senators, five members of the Texas House of Representatives, and two members of the public appointed by the lieutenant governor and speaker of the house.

Comments? Questions about “the business of lending money to the masses?” Email TrihouseConsulting@gmail.com

 

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