Re: “Instant cash — but it’ll cost you — High-fee loans go virtually unregulated in Texas. Proposed bills aim to change that,” last Sunday news story.
With the economy in a nosedive, it is particularly heartbreaking to see so many hard-working Texans trapped in a cycle of debt by what is essentially an unregulated loan with often usurious annual percentage rates.
Small wonder that many states are moving to rein in their operations. But in Texas, it’s still an uphill struggle just to get them licensed and regulated like all other players in the credit market. Texas law doesn’t even allow a state agency to investigate and resolve consumer complaints against these companies.
While the deck is stacked against consumers, there is still hope. AARP supports a bill by state Sen. Wendy Davis scheduled to be heard in committee the first week of May.
It is a sensible, pro-consumer measure aimed at bringing outrageous fees under control by creating a much-needed framework of state oversight for the industry.
Mary Scott, Bedford, president, AARP Texas