House approves new rules on payday loans

AUSTIN, Texas (AP) — Payday loan providers would be required to post the terms, interest rates and fees for their services under a bill approved by Texas lawmakers.

The measure by Southlake state Rep. Vicki Truitt also requires loan companies to provide contact information for the Consumer Credit Commissioner and the consequences of extended refinancing of short-term loans. Truitt said she spent hours striking a delicate balance between industry interests and consumer protection.

Proponents say the bill will require loan companies for the first time to disclose the full costs to the consumer.

Opponents say the bill puts undue regulation on the industry. State Rep. Gary Elkins, who has a payday loan business, said the consumer already has enough information and that the new regulation would be burdensome.