News Column

BRIEF: Pro-con: Should payday, auto title lenders be regulated?

January 27, 2014

By Melissa Crowe, Victoria Advocate, Texas

Jan. 27 -- Texas' major cities are leading the way in regulating payday and auto title lending. It's a move seen by some to limit predatory lenders and by others to make companies responsible for borrowers' hardships. Although Texas lawmakers ended their most recent session without reining in those lenders, it could become part of the debate of the November governor's race between Republican candidate Greg Abbott and Democratic candidate Wendy Davis . Joining a handful of other cities, Houston City Council voted in December to limit the size of a loan, the number of times it can be refinanced, and how much principal must be paid down with each installment. With the largest city in Texas taking a stance to govern these lenders, should Victoria City Council consider regulating its 22 payday and auto title lenders? Pro: Regulations protect consumers from predatory lenders Con: Regulations limit business, penalize lenders ___ (c)2014 Victoria Advocate (Victoria, Texas) Visit Victoria Advocate (Victoria, Texas) at Distributed by MCT Information Services

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Source: Victoria Advocate (TX)

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