Payday Lending Bill Wins Approval In Texas Senate

AUSTIN (April 23, 2013)—The Texas Senate has approved a bill aimed at so-called payday lending.

The bill goes to the Texas House.

Some of the loans come with interest rates of more than 500 percent interest plus numerous fees.

More than a dozen states ban the loans while others cap the interest rates.

Several Texas cities have adopted local restrictions on the lenders.

State Sen. John Carona, R-Dallas, says regulating the loans statewide could save consumers $220 million a year, but critics in the Legislature have accused Carona of protecting the industry with a bill enshrining only weak restrictions.

Sen. John Whitmire, D-Houston, won approval of a contentious amendment that would preserve the right of cities to enact stronger regulations.

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