Payday Lending Bill Pulled From Floor After Raucous Debate

April 18, 2013
Texas Tribune  
payday lending news

After a heated debate over Senate Bill 1247, which sought to create a regulatory framework for payday and auto title lenders in Texas, Sen. John Carona (R-Dallas) finally agreed to pull the proposal from the Senate floor. Several bills before the state Legislature aim to impose limitations on short-term loans, but Carona's had been perceived as the most viable. However, consumer advocates and payday lobbyists have been at odds over provisions in the legislation. During the April 18 debate, Carona said he did not intend to shut down the payday lending industry but merely to impose reasonable limitations. He brought to the floor six amendments meant to address some consumer advocate concerns but pulled the bill before debate on them began. The amendments addressed ways to strengthen consumer protections, such as mandating the acceptance of partial payments and limiting the maximum duration of multiple-payment loans. Some senators who had previously expressed support for the bill apparently were hesitant about the proposed changes. But in a political debate that leaned toward the person, Carona intimated that some of his colleagues were caving in to pressure from industry lobbyists.
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