“The Associated Press is reporting that the Texas Legislature has approved a package of measures requiring payday lenders to meet stricter transparency standards — mandating that they post full interest rates, fees and terms of service.
The House approved on Thursday two companion bills directing that loan companies display the disclosures prominently and advise customers that payday loans are only meant to meet short-term needs, not solve long-term financial problems.
The bills now go to Gov. Rick Perry. They would also require lenders to post contact information for the state consumer credit commissioner.”
HB 2592 requires credit service organizations to provide consumers with “adequate information” about the costs they face before they sign any agreements. It does so by strengthening notice and disclosure requirements for lenders.
HB 2594 requires payday and car title lenders specifically to be licensed and regulated by the state. In order to obtain a license, those companies will have to pay minor fees and issue bonds from $10,000 for the first license up to a maximum of $2.5 million for additional licenses. The Finance Commission of Texas is charged with overseeing the new rules.
I think the industry did well for themselves.