News & Resources

Texas lawmakers seek short-term financing legislation

Mar 16, 2011 Todd Milner

One Texas lawmaker seeks to introduce new legislation that would place limits on the state's short term lending industry, the Fort Worth Star-Telegram reports. State Representative Vicki Truitt, who is the chairwoman of House Pensions, Investments and Financial Services Committee, is calling for a bill that would place tougher restrictions on short-term lenders and auto title loan suppliers. According to the paper, Pruitt's opponents believe the bill goes too far and would possibly run short-term lenders out of business. State Representative Wendy Davis believes any new bill should have strong consumer protections, but not shut down the industry altogether. Truitt is wary that her opposition will seek to forgo any new bill, as she claims they have in the past. "Both industry and consumer advocates have killed bills in the past related to this issue - bills that might have made improvements," Truitt told the Star-Telegram. "If we don't find middle ground both can accept, we will have the same result." Davis' version of the bill, which would notably cap interest rates at 36 percent for military personnel, has drawn opposition from the Consumer Service Alliance of Texas, but told the Dallas Morning News that the agency "hopes for a compromise."