Lending Reform Before the Texas House Monday

Amendments designated “Key Votes” by AARP

On Monday, Texas House members will have their first opportunity this session to go on the record to cast votes on meaningful payday lending reform.

The House will consider SB 1282 by Senator Kevin Eltife (R-Tyler), a clean-up bill involving the regulatory authority of the Office of Consumer Credit Commissioner. The bill will serve as a vehicle for an amendment by Rep. Tom Craddick (R-Midland) that would bring borrower protections currently in place in 22 Texas cities to the entire state. Specifically, the amendment would:

• limit the number of allowed payday and auto title loan refinances to four;
• require a partial pay down of 25 percent for each refinance; and
• tighten definitions in current law to make consumer protections easier to enforce.

Another expected amendment will be offered by Representative Chris Turner (D-Arlington) which would ensure that loans made to military borrowers in Texas are consistent with federal law that caps the interest rates at 36% APR.

Both amendments are being designated “Key Votes” by AARP, which means the organization will notify House members in advance and will inform its members and the public after the fact on how each member voted.