Despite recently passing a bill requiring short term and auto loan title lenders to make more detailed disclosures about interest rates and fees to consumers making credit decisions
, the Texas House of Representatives killed a bill to regulate short-term loan industry practices. Short term and auto title lenders must report data to the state under another piece of legislation that was recently passed.
Following the defeat, Republican state Senator John Carona - the chairman of the Senate Business and Commerce Committee - announced his intention of requesting an interim study of legislation, according to the San Antonio Express-News. "This industry needs to be on its best behavior for the next two years," he told the Express-News. "If the industry is intent on hiding behind an army of lobbyists, they may find that those of us who understand that the industry has a place in the market may not be so understanding next time." Republican Representative Vicki Truitt of Keller, who sponsored the legislation, accused Houston Republican Representative Gary Elkins of a conflict of interest while the bill was on the House floor. Elkins - a short term lender - argued that there were enough regulations in place already, according to the Forth Worth Star Telegram.