If you’re reading this article, you already know payday loan offers aren’t what they used to be. As of two years ago, Houston enacted many laws to regulate the online payday loan industry. Some updates updates have the effect of regulating the title loan industry. As is the case with most other short-term lenders in Houston. A few things to note about the changes to personal loans in Houston. The changes that some Texas cities put in place did not go into effect until a few years ago. Additionally, these changes came from regulations in place in other Texas cities. For example, San Antonio and Dallas have similar restrictions in place. Most rules will regulate payday advance and car title loan companies. In an ideal situation, these new rules will mirror the changes that are already in place in other Texas cities.
The main implications of these changes seek to control installment and payday loans in Texas. Online payday loan companies in Houston must register with the city each year. This takes us back to consumer protections that were unveiled a few years ago. This measure is not specific to the city of Houston. It works in concert with other cities throughout Texas like Dallas and San Antonio. This regulation will control the lenders that provide loans within the city limits. If a lender wants to provide loans they must register. Other high-level regulations include payday loans which limits the applicants’ monthly income. Someone who takes out an online advance can only rollover that loan three times. This is one of the biggest changes when compared to how the lending framework used to be. When someone takes out a for a short term financing now they must pay off the online loan. This will occur within a specific amount of time. There is no documentation on whether this has been successful or not. We have no idea what happens when a consumer can not make the necessary installment loan payments. This late payment will affect the rollover limit on installment funding. Are the cash advances from these consumers sent to collections? Are they now hounded by bill collectors when they would have had more time to pay off the loan? We have no idea. The real implications of these changes will only appear over the next few years. There are definitely people that can’t pay their payday advances. This factors in different lending decisions for companies in the greater metro area. We also wonder whether people are actually reporting when issues like this happen. Common sense tells us that Beaumont residents would rather not report financial problems like this.
Are lending changes in Houston here to stay?
Another byproduct of these new restrictions is to make documentation easier to understand. In our estimation, this can only be a benefit. We’ve all viewed contracts that are long. It’s easy to get overwhelmed when confronted with the amount of legal jargon and unnecessary legal language. One thing we have seen is there are more complaints with these new changes. Much like the cash advance changes in other cities in Texas, there are now more people in Houston. These citizens are voicing their concerns with online payday loans. You can read up on the local ordinances and regulations to get a better feel of what car title and short term lenders need to follow. Not all these concerns are what you would expect, though. Many people are now complaining that they no longer have access to the funds they need so much. Whereas a resident used to have access to many different types of short term loans, they are now forced to find similar options. Many local residents are now going to different parts of the state in search of lenders that don’t deal with the same types of regulations. Other people are taking out smaller advances in Galveston, TX. We’ve already seen these changes take place in many cities in TX, such as Dallas and San Antonio. While we have more information on the results of changes in those cities. We don’t have enough data to show anything specific about changes for installment loans. It will be best to wait another year to check the changes. We are sure to see more changes with total applications for online payday loans. One addition to these regulations is that payday loans or installment loans in Texas can only have 3 rollovers. This means a southern resident can’t keep paying on a specific loan. This is only a good thing and there stands to be less problems in the industry with these changes in place. We will see more common sense changes come into play that change Houston payday loans.