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Committee hears competing views on bill to raise small‑dollar loan interest caps
Summary
Senate Bill 19‑06 would raise interest-rate caps for Chapter 342E consumer finance loans; industry witnesses argued the change would restore access to regulated, local credit, while consumer advocates and AARP warned the increase would worsen costs for vulnerable borrowers.
Senate Bill 19‑06, filed to update interest limits in chapter 342E of the Texas Finance Code, drew testimony for and against during the Business & Commerce Committee hearing.
Author Senator Creighton told the committee the bill "will expand the interest rates allowed for chapter 342e lenders who extend credit commonly referred to as consumer finance loans," and said Chapter 342E rates "have not been modified in nearly 25 years," which he argued has reduced the availability of small‑dollar credit for many Texans.
Supporters from regulated branch lenders said higher caps would let licensed local companies serve more customers. Austin Clancy, vice president and managing director for public policy at OneMain Financial and president of the…
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