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.