Capitol Comments: Modern Day Money Changers and Closing the Loophole

My commute to work is blissfully short—just enough time for one or two songs on the radio.  So when I hear a commercial, I am quick to change the station.  Yesterday as I headed out, I heard a peppy woman encouraging me to get $2,500 in fast cash today for an auto title loan.  Annoyed, I tried another station where I was urged to get quick cash now with no credit check.  When my third station offered another payday loan commercial, I was disgusted enough to simply turn off the radio altogether.
The claim of payday lenders is that they offer a solution to families who face short-term crises.  However, instead of promoting financial stability for families, these lenders actually benefit more from a family’s financial struggles.  Payday and auto title loan businesses have tripled in number in Texas since 2006, when they discovered a loophole in Texas law allowing them to charge excessive fees for loans that trap people in debt. Read Full Story >>