Texas House members target payday loan industry

[TexasTowelie]

Two state lawmakers want to make public the backers that provide the capital for companies in the payday loan industry.

Citing a need for greater transparency, Rep. Eddie Rodriguez, D-Austin, and state Sen. Wendy Davis, D-Fort Worth, filed companion measures — House Bill 3033 and Senate Bill 1715 — to force payday loan operators and title lenders to disclose their financial backers in order to provide more information — and therefore, better protection — to Texans who take out short-term, high interest loans.

Rodriguez said it is possible — though he cannot know for sure because he doesn’t have the information — that nefarious behavior could be taking place behind the scenes with third-party lenders. Meanwhile, the industry rejected Rodriguez’s assertion and said lenders should be allowed to protect their trade secrets.

“We’ve been trying to find out who the big money interests are that benefit from these lenders’ predatory practices,” Rodriguez said in a statement. “Until we know who is really behind the curtain, we won’t make legislative progress to rein in the worst abuses.”

More at http://www.statesman.com/news/news/texas-house-members-target-payday-loan-industry/nWrJX/ .

[Gman]

1. The bills are DOA

they'll never see the light of day out of committee. Great ideas for a bill. But they'll never pass any restriction on this industry. The lobby is too strong. Lots of banking money involved.

[pipoman]

2. It can't be true

that these places aren't subject to disclosure of funding sources to some government agency?