Payday and Auto Title Lending Reform

Payday Loans


Take a Survey

United Way of Central Texas has launched the following surveys to collect data from Veterans who have taken a payday/auto title loan and are willing to share their data as we prepare for the 2023 legislative session. The links are below:

For Immediate Release (10/5/2017) from the Texas Fair Lending Alliance: CFPB Payday & Auto Title Loan Rule Will Bolster Fair Lending for Texans

Commenting on CFPB Rules

The Consumer Financial Protection Bureau (CFPB) proposed a new rule in June concerning the federal regulation of payday & auto title lending businesses. The rule addresses an industry whose business model is based on trapping people (who typically have very few financial resources available to them) in a cycle of debt. The public has until September 14th to comment on this rule. This means that industry lobbyists and representatives will be working very hard to weaken this rule so that they can continue business as usual, extracting billions of dollars from families who can least afford it. 

Many advocates for reform, like United Way of Central Texas, believe that this proposed rule is a good start. We also believe that loopholes exist in the CFPB’s rule, allowing lenders to avoid the spirit of the law, which is aimed at the borrower’s ability to repay the loan, not becoming trapped in debt. We have a historic opportunity to comment on this rule and explain why it should not only be supported, but why it should also be strengthened.

Below is a sample comment that you and everyone in your network can submit online. Simply go to and enter your information and comment. Comments will be compiled and sent to the CFPB. Please know that once comments are submitted to the CFPB, they will be considered public record, and nothing will be edited on your behalf. Feel free to edit any information in the sample comment below.

I support the CFPB’s proposed rule; however, I believe that the rule needs to be strengthened. The ultimate goal of the CFPB’s rule concerning payday & auto title lending should be to prevent consumer harm by ensuring borrowers’ ability to repay loans. The proposed rule contains loopholes that give payday & auto title lenders the ability to manipulate the proposed regulation. By closing the rule’s existing loopholes, even stronger rules will be established to provide a more equitable environment for people who are in need of a short-term loan.

I believe that consideration of a borrower’s ability to repay a short-term loan should include monthly expenses such as rent and food, not just the ability to repay the payday or auto title loan. Without this consideration, borrowers will remain in a cycle of debt. Every borrower should have an ability-to-repay assessment, no exceptions. Furthermore,borrowers should have a maximum indebtedness of 90 days per year.

The work of the CFPB is critical to millions of Americans who live with limited financial security. I want to thank the CFPB and Director Cordray for their efforts, and I hope and expect to see stronger rules that will ensure fairer financial products for everyone.

For more information from the Texas Fair Lending Alliance, please click here.

The Ordinance 

Host your own screening!

The United Way of Central Texas can facilitate a free screening of The Ordinance for your organization, church, club, neighborhood association, etc. To request a free screening of the full-length film please click here to submit a request form.

"The Ordinance" is a documentary film that discusses the work local communities across Texas are doing to rein in the damaging effects of predatory lending practices common among payday and auto-title lenders.

Work done by the Temple City Council to implement the Texas Municipal League's unified ordinance is prominently featured in the film (told through the lens of local faith leaders working to support the ordinance).

The Effects of Payday and Auto-Title Loans on Texas Veterans

The United Way of Central Texas partnered with Texas Appleseed, United Way of Greater Houston, and Mission United in Houston to expose the harmful impact of payday and auto title loans on Texas Veterans. These loans are exacerbating financial hardships for Texas veterans and their families. The United Way of Central Texas, along with their partners, advocate for Texas leaders to take action to rein in abuses and establish a baseline of fair market practices to enhance the financial well-being of our veterans and of all Texas families.

You can view the complete survey and its findings here.