The Empire Strikes Back

The Consumer Service Alliance of Texas has asked the courts to declare an Austin ordnance passed earlier this year unenforceable  The most defensible portion of the ordinance is zoning designed to limit the density of payday lenders. Where I live in south central Austin, there are one to three payday lenders in every second and third tier shopping mall. A 2006 zoning ordinance passed in Fort Worth has been successful, and Texas Representative Wendy Davis of that city sponsored bills in the 2009 and 2011 legislative sessions seeking to regulate interest rates, something a Texas city is not allowed to do. Both bills were never allowed  a floor vote. Parts of the Austin ordinance push the boundaries of a city's authority. A Dallas bill with some similarities has already been challenged by CSAT. The point of view of the lending industry is represented by Ryan Brannan's legislative update on the Texas Public Policy Foundation website, and the report he authored, "Evaluating Consumer Access to Short-Term Lending."

My previous post, Payday Lenders in Austin, Texas gives some background on the Austin ordinance.