Texas Senate Approves Payday Law, Next the House

What’s worth noting is that Texas has a legislative session every two years.  If it does not get done prior to May 28th (140 days from January 8th), it will take adjourn for two more years.  The Senate passed this bill by an alarming margin of 24-6.  Now the bill has to pass the House of Representatives.

The problem I perceive with this legislation is that it’s the equivalent of throwing shit at the wall to see what sticks.  The legislation does not know what will make short term credit more accessible and less abusive.  They’re just guessing.

Some pretty good comments here:

“So poor people are too stupid to make their own financial decisions regarding the borrowing of money. Nice to know.”

“Bad bill. Excess regulation is far worse than inadequate. In this case, you have an industry that caters to a clientele that other financial concerns aren’t interested in. As a result, the poor, and sometimes middle class, find it cheaper, more convenient, and far less complicated than the borrowing/begging-from-family or pawn shop alternatives. These regulations will limit competition in the market, raising rates on the people the upside-down legislation purports to help. Shame on you phonies.”

“Political posturing, pure and simple. The House needs to kill the bill.”

You can read the full article in the Statesman titled, “Senate approves tougher payday lending law“.

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