By BJ Austin, KERA News
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-827355.mp3
Dallas, TX – Fort Worth Senator Wendy Davis wants to put the brakes on "pay day lenders". Those are businesses that make short-term loans to people who often need additional cash to make it to the next paycheck.
Davis has co-authored a bill that would cap the interest at 36%. She says Congress recently did that for "military" families.
Davis: If it's not okay for pay day lenders to prey on the military, why in the world would it be okay for them to target some of our most vulnerable citizens; our lower income families, senior citizens, police officers, firefighters, teachers and the like.
Senator Davis says there's a loophole in Texas regulation that allows pay-day lenders to charge a 1,000% annual interest rate if borrowers can't re-pay on time.
Industry officials say they are providing an important financial service. The Business and Commerce Committee will hear the bill.