Texas Passes Payday And Title Loan Laws

August 2nd, 2011 by Reed Allmand

Texas Passes Payday And Title Loan LawsHouse Bill 2592 and House Bill 2594 governing payday loan and car title lenders passed last week giving consumers more protection. House Bill 2592 requires more noticeable disclosures regarding fees and interest rates. House Bill 2594 requires both payday loan and car title lenders to be licensed and regulated by the state.

The good news for Texas debtors is that they will be able to check with the state to make sure a company is actually licensed before their take out a payday loan or title loan. They will also have an opportunity to find out the true cost of the loan before they commit.  Many people in debt using a payday loan have been shocked by the real costs associated with the loans. Also, many Texas debtors did not fully understand how loan costs could balloon quickly if they did not pay the loan off quickly. But even with the new rules which are scheduled to go into effect in January 2012, debtors should use caution before taking out any payday loan or title loan. Below are a few tips:

  1. Try to avoid online payday loan or title loan lenders. While they may claim to serve Texas debtors, if they are not physically located in the state, they may not adhere to state rules and they will not be licensed in the state.
  2. If you do decide to take out a payday loan or title loan, pay off the loan quickly. If you need to extend your repayment period, the costs can skyrocket.
  3. Never pay for payday loan or title loan fees upfront.  Any lender asking for you to pay loan fees first (before you actually receive the loan) is probably running some type of scam.

 

avatar

About Reed Allmand

Website

Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand

Subscribe

Subscribe to our e-mail newsletter to receive updates.

FAQ

Why do I need to submit a new wage order when I modify my plan

When we modify your bankruptcy plan we are changing your plan payments. This means that we have to get with your employer and change the terms and amount of your wage order. The only way we can do that is by filling out a new wage order form.  

Learn More
What happens if the stay terminates on my home?

If the bankruptcy stay terminates on your home that means that even though your in bankruptcy, your creditor can pursue all there legal remedies they can pursue if you were not in bankruptcy. This includes foreclosure, and having your house sold and evicting you from your house.

Learn More

Find Location

map
  • Dallas Bankruptcy

    5646 Milton Street, Ste. 120 Dallas, Texas 75206
  • Fort Worth Bankruptcy

    860 Airport Freeway, Suite 401, Hurst, Texas 76054
  • More Locations

Meet Our Clients