Texas houses one or more in five American “stores” that make pricey loans towards the working bad. Legislators may fortify the state’s standing—or kill the majority of it well.
The next few years could be make-or-break for Texas’ $5.8 billion payday loan market with legislators convening in Washington and Austin. In Washington, the industry’s future could hinge on whether Donald Trump fulfills a pledge to gut the customer Financial Protection Bureau. In June, that federal agency proposed guidelines needing companies like payday loan providers to ascertain if borrowers can repay loans. If the CFPB’s guidelines become effective as slated in 2018, conformity expenses will get rid of 70-plus % of most companies that stretch short-term financial obligation to customers, industry advocates say.