Senate Committee Targets Payday Lending. If a couple of bills filed by Sens.

Senate Committee Targets Payday Lending. If a couple of bills filed by Sens.

Wendy Davis, D-Fort Worth, and Royce western, D-Dallas, passes this session, consumers whom sign up for short-term, high-interest loans might be protected from excessive rate of interest costs.

A $500 payday loan meant she could help her mother, suffering from rheumatoid arthritis, pay her high insurance deductible for Cynthia Reynosa. Nevertheless the interest she paid on the next 6 months totaled $1,200 — more than twice exactly what she'd lent.

Today"I was thinking I would find the money wherever I would have to find it, so she wouldn't have to suffer anymore," Reynosa testified during a Senate committee hearing.

If a couple of bills filed by Sens. Wendy Davis, D-Fort Worth, and Royce western, D-Dallas, passes this session, customers like Reynosa whom sign up for short-term, high-interest loans might be protected. Their measures would close a loophole within the state finance rule, putting a limit on otherwise interest that is exorbitant costs.Read more