History: Payday & Auto Title Loans in Texas

History: Payday & Auto Title Loans in Texas

2017. During the regular session of the 85th Texas Legislature, a few payday and auto title lending bills made it out of committee in both chambers, but none made it to the floor. However, Representative Craddick offered an amendment to SB 2065 what would enact the unified payday/auto title ordinance at the state level (a model local ordinance originated by the Texas Municipal League). However Representative Capriglione offered an amendment to the amendment that would preempt local payday/auto title lending ordinances. While we have heard that a few legislators were confused with the vote, the vote shows us the stance of most representatives on this issue. In the end, the bill failed, and the local ordinances stayed intact.

Note. As of January 2018 41 cities have enacted "business regulations" over payday lenders that are similar to the example ordinance available from the Texas Municipal League. Sixteen cities have enacted land use regulations related to payday and auto title lending.

2019.  During the 86 th  legislative session, there were multiple efforts (through both filed bills and
amendments proposed from the floor) to eliminate the uniform payday and auto-title lending
ordinance which has been adopted by 44 Texas cities. SB 1209, HB 3899, and HB 2847 would have
preempted the payday and auto-title lending ordinance, yet these bills either did not pass or
advocates were able to work with the bill author to explicitly exclude the payday and auto-title loan
ordinance.

Additionally, HB 1442, which renews the Office of Consumer Credit Commissioner – which is the
state agency that oversees the regulation of Credit Access Businesses (CAB or payday and auto-title lenders) – passed and was kept clean. However, this bill did extend the OCCC’s authorization to
include online lending, which is a win.