Posted on Dec 12, 2013

As reported recently in the Fort Bend Star, Missouri City, Texas is considering measures to restrict and regulate payday loan lenders within its boundaries. The Texas Legislature has not been effective at passing any laws to regulate such lenders, reportedly because of the payday loan industry's strong lobbying presence.

Instead of limiting the terms of payday loans, Missouri City plans on regulating where payday lenders are located, keeping them out of residential areas. This way of regulating them has not been challenged much by the payday lenders in court, reports the Star.

Many consumers that consult with my office seem surprised that payday loans can be discharged in bankruptcy, or paid without interest through a court-supervised chapter 13 repayment plan.

According to the Star article, in November 2013, Houston became the fifth major Texas city to take steps restricting payday lenders.  The proposed Houston ordinance is similar to those passed in Austin, Dallas, El Paso and San Antonio. Only Fort Worth among Texas' six largest cities, still lacks any regulations on payday and auto-title lending.

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J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization