Email, Rebecca Acuña, Texas press secretary, Wendy Davis gubernatorial campaign, Jan. 3, 2014

10:47 a.m.

In 2011, Senator Davis called White’s appointment to the commission, “the classic fox in the henhouse.” She said, “It’s really disgusting that an industry that profits from the poor by charging 1,000-plus interest is put at the head of the state’s financial regulatory agency. It’s saying, ‘It’s not only OK, but we’re going to put them in charge.’ ”

 

Greg Abbott is one of the top Texas recipients of funds from the payday lending industry.

 

Below please find information on interest charged.

 

1. "The problem is that these loans come with a major catch—exorbitant interest rates that begin at 400 percent Annual Percentage Rate (APR) and can surpass 1,000%."

Source: Rapacious Loan Sharks Stalk Low, Middle-Income Texans - (Center for Public Policy Priorities - March 15, 2007)

 

2.  "In Texas, where regulation of this industry is almost non-existent, interest rates soar as high as 1000%. More than 35,000 Texans lost their cars to auto title lenders in 2012."

Source: Texas Payday Lender Lobby Unmasked and Disrobed (Christian Life Commission)

 

3. "Joe Sánchez, AARP Associate State Director for Advocacy, noted that Craddick’s bill does not create new regulations but simply ensures that all lenders making small dollar consumer loans operate under the same standards. Interest rates charged by these businesses currently range from 280% to over 1,000% APR."  

Source: Craddick’s HB 2019 would rein in payday lending abuses (AARP)

 

4.  1,000% Interest - Good While Supplies Last: A Study of Payday Loan Practices and Solutions (Arizona Law Review, Vol. 52, p. 563, 2010)

 

5. "For a 10-day/$400 loan, a Texan could expect to pay about $100 in interest and fees, equating to a 925% APR."

Source:  The  Hidden  Costs of  Payday Lending (Texas Business Review, April 2008)