By Bob Allen
The Texas Baptist Christian Life Commission dropped opposition to a payday lending bill in the state Senate after additional consumer safeguards were added during debate April 22.
Senators voted 24-6 to approve amended legislation put forward by Dallas Republican John Carona that included concessions for the 3,500 payday and auto title storefront businesses in Texas.
Leaders of a coalition that includes the Texas CLC and the Texas Catholic Conference said the bill doesn’t do everything needed to safeguard the poor from endless cycles of debt, but called it “a strong first step” toward regulating predatory lending practices.
“While we remain concerned about usurious installment lending even after passage, this bill now represents another step forward in the ongoing struggle for fair lending in Texas,” said Stephen Reeves, CLC director of public policy.
The Fort Worth Star-Telegram credited Fort Worth Sen. Wendy Davis and other Democrats with pushing a series of amendments to significantly alter a compromise engineered to balance demands from the powerful payday lending industry and consumer groups seeking tougher regulations.
Last year, the Texas CLC recognized Davis for her work against predatory lending practices by presenting her the Horizon Award for leadership in public service at the Cooperative Baptist Fellowship General Assembly in Fort Worth.
Observers expect the lending industry, which has spent millions of dollars on the issue, to increase pressure as the debate moves to the House.
While critics accuse lenders of charging steep interest and forcing consumers into continued cycles of debt, industry officials say they perform a valuable service to the elderly and the working poor by providing for high-risk borrowers who might otherwise be unable to obtain a loan.
— Ken Camp contributed to this story.
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