Ditching compromise, Parker pushes tough pay day loan regulations

Mayor Annise Parker on Friday scrapped a compromise intend to regulate payday and automobile name loan providers in support of more strict restrictions, planning to curtail just just just what she called a usurious racket that traps borrowers in a period of financial obligation.

Parker stated the City Council will vote the following month on the laws, that are modeled on guidelines passed away by Dallas, Austin, San Antonio and El Paso, a number of which were sued by payday loan providers. The industry had pledged not to ever sue if Houston passed a compromise proposition negotiated by City Attorney David Feldman early in the day in 2010.