A Look at Payday Loans and Current Regulation in Texas

This comment provides an introduction to, and background of payday loans. It focuses on the payday loan—its perspectives, mechanics, and structure. It uses a cases study to illustrate the mechanics of the payday loan and the debt cycle it often creates. Further, it looks at the demographics provided by the payday advance industry and regulators, and the characteristics of payday loan consumers. Lastly, it covers Texas statutory provisions, methods used by lenders to circumvent usury laws, and approaches to state regulation.