State Senate Approves New Payday Loan Rules

AUSTIN (AP) - Legislation requiring payday loan providers to post interest rates, fees and terms of service took another step forward in the Texas Legislature.

State senators voted approval Monday for the measure, which now returns to the House. The bill would require loan companies to display the disclosures prominently and advise the public that a payday loan is only meant to meet short-term needs, not long-term financial problems.

Companies would also have to post contact information for the state consumer credit commissioner.

Supporters of the bill say it's important to provide the public with better information and give more oversight to the industry. But some lawmakers want to see more regulation in order to protect Texans from getting trapped in payday loans.

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