Personal Cash Advance Lending Partners Respond to Proposed Texas Payday Loan Bill

April 25, 2011 - PRLog -- Together with its lending partners, PersonalCashAdvance.com, an online referral resource for consumers across the country in need of a cash loan, has formulated an official collective response to a payday loan reform bill proposed in the Texas state senate. The bill is fairly typical of cash advance reform legislation that has swept the country in recent years.

If enacted, the bill would impose a 15-percent maximum interest rate on cash advances and would limit the amount of money consumers could borrow to 35 percent of their monthly income with a maximum loan size of $1,240. In addition, the bill would compel payday lenders to report all lending statistics to the state’s credit commissioner and would prevent lenders from threatening borrowers in default with criminal charges.

“The consensus among our lenders is that the proposed Texas payday loan reform bill is a sad commentary on the public’s perception of the cash advance industry. Unfortunately, a small minority of unscrupulous lenders exploit borrowers in unethical and usurious ways, which gives the rest of the industry, which is by and large an honest one, a bad name,” explained Melissa Waters, the public relations representative for Personal Cash Advance.

Reputable lenders that offer cash advances for the most part already adhere to the restrictions set forth in the proposed Texas bill. Honest companies recognize the importance of responsible lending and impose standards on themselves for the good of the borrower.

“It is unfortunate that a small handful of disreputable lenders have dragged the name of the payday loan industry through the mud. The result has been enormous government intervention with payday loans, which often severely limits the short-term borrowing options available to consumers. For instance, if this bill passes, Texas consumers will no longer be able to borrow loans larger than $1,240 even though they may be fully capable of repaying a larger loan,” said Neil Cutting, the spokesperson for PCA.

For more information, visit: http://www.personalcashadvance.com or call 1-800-920-7430.

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