Statement from Texas Payday and Auto Title Loan Business Owners on Current Legislation

by The CAB Man Texas on May 9, 2013

PRESS RELEASE

May 8, 2013

FOR IMMEDIATE RELEASE:

CAB Consulting represents the small to mid-sized Credit Access
Businesses in Texas. This group, which is roughly 10% of the
market, supports the Chairmen in their efforts to protect
consumers and also understands that Consumer Protection is
critical for the long-term viability of our businesses. As the
“mom and pop’s” of the industry providing access to credit when
consumers need it most, we are dedicated to friendly,
convenient, and flexible service for each customer in our
storefronts across Texas.

Michael Brown stated, “Our group of owner operated Credit Access
Businesses has not come to Austin empty handed, we have intensely
worked this process with sincere intent and have brought specific
examples of how pending legislation would have multiple lethal
consequences for consumers and the industry. As well, we are
laying the groundwork for a compliance program called Borrow
Smart that will improve Texas’ Credit Access Businesses in many
ways.”

The record shows a very small number of complaints exist for the
industry when compared to others. Please refer to the Office of
the Credit Consumer Commissioner’s annual report, which shows
only 282 complaints out of roughly 3.5 million transactions. Of
those 282 complaints only 2 remain unresolved. This complaint
ratio translates to a percentage of 0.0000805714.

These statistics were part of the record in last week’s House
Committee on Investments and Financial Services’ hearing on SB
1247. During the hearing Consumer Advocacy groups were questioned
by legislators on whether there is a sufficient problem to warrant
such aggressive legislation at this time.

Along with CSAT, the small to mid-size Credit Access Business
owners remain committed to working within the legislative process
to pass a bill that supports meaningful, effective, and realistic
regulations.

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