In Dallas, the political atmosphere for payday lending reform is optimistic. After three years of ordinances limiting lending practices, the local movement has spread to 17 other cities across the state. Today, Dallas City Councilman Jerry Allen went before the Amarillo City Council to try and recruit that city to the fight club against loan sharks. "The momentum just continues to gain," Allen told Unfair Park. "After the 2011 session, I realized that the state wasn't really going to do anything so I got back and worked with the city."
Psychonaught That gleaming wad of cash comes with a 600+ percent interest rate, if Texas predatory lenders have anything to say about it.
And increased limitations can't come quickly enough: Texas has some of the most lax lending laws in the country, with the highest surcharges. There is no cap on lending fees, and some interest rates soar over 600 percent. Moreover, statewide payday lending reform has failed in the Legislature for the past three sessions.More »