Payday & Auto Title Lending Reform

Texas Appleseed supports fair, equitable interest and fee charges for payday, auto title and other small-dollar loans. Texas currently has little to no oversight or regulation of the payday and auto title lending industry compared with many other states. In Texas, these loans often carry rates of 500 percent APR or higher. We work at the local, state and federal levels to ensure effective payday industry regulation and oversight, including encouraging cities to pass Texas’ unified ordinance, which adds basic, common-sense standards to control predatory practices in the payday and auto title lending marketplace. Our work on small-dollar lending is centered around three important areas to achieve meaningful reform: expanding market-based fair loan options, making strides in regulatory reform, and offering financial education to those who need it.

Texas Appleseed is also part of the Texas Fair Lending Alliance, a coalition of organizations and individuals working to transform the Texas payday and auto title loan market from one based on a cycle of debt, to one that thrives on success.