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