Examining Lending Reforms Versus Political Influence

For Texans seeking a small personal or payday loan this year the rules have changed for many Texans on these loans. While no meaningful actions have been taken against payday loan lenders or other lenders on the state level as yet, many cities, towns and small communities have seen a surge of activism and local laws changed for lending practices. Houston, Dallas, Austin, San Antonio, and other cities have all enacted laws to protect its citizens from unethical lenders and lending practices which have set back many residents financially.

While on the state level nothing has changed lending wise, the push of cities and towns to change lending laws has reached the ears of state level politicians. There is an expected political battle coming in 2015 over payday lending and small personal loans as the next Legislature convenes early next year. The loan industry has heavily financed politicians, but the politicians are starting to realize this is an issue close to voters hearts and that failure to act for the people who voted them into office could have serious consequences. Yet in Texas our history shows that money talks at the Legislature.

One can be certain of one thing, and that is that even if the politicians finally do give into their voting public, the payday loan industry will not back down or go away without a long drawn out fight. They are even challenging the locally enacted laws that effect their industry, A Dallas Municipal Court for example has already denied a series of motions from payday lenders trying to strike down Dallas rather strict payday lending rules and codes. This same company who challenged the Dallas law is ran by none other than Houston-area state Rep. Gary Elkins, who owns CBA Leasing Ltd. doing business as Power Finance. As you can see the payday loan industry in Texas roots run deep even counting law makers among their own ranks.

Yet Texas leads the nation in its grass roots fight against unethical lending practices and shows the rest of the nation just how far activism can take you. City Councils throughout the entire state have taken on lenders head on, cities like Austin, Dallas, Houston, San Antonio and many other smaller ones have all put on the books laws to regulate lending where the state had failed, showing the rest of the nation that small communities can accomplish what the state refuses to do.

There are a number of other options in Texas for those seeking loans on a short term basis that are not payday loans. Cash central for example offers installment loans of up to $5000 with much better rates than payday loan lenders, although they too offer a payday loan option. Another option is OneMain Financial they offer short term installment loans designed to suit your budget and needs and they have branches throughout Texas. They feature multiple payment options and your loan amount can be up to $15,000. Lastly the loan amounts have fixed interest rates and no balloon payments so there are no harsh surprises in store for you with this lender. If you do go looking for a loan in Texas be sure to look into your lenders background and read the fine print and the complete terms and conditions of your loan.