In response to rising concerns over predatory lending practices in Texas, new legislation was introduced today to better protect consumers from falling into cycles of debt. The bill, known as the Consumer Protection Act of 2025, aims to crack down on lenders who take advantage of vulnerable individuals by imposing exorbitant interest rates and hidden fees.One of the key provisions of the bill is a cap on interest rates for payday loans, which have long been a sore spot for consumer advocates. Under the new law, lenders will be prohibited from charging more than 36% APR on these short-term, high-cost loans. This move is expected to provide much-needed relief to low-income Texans who often turn to payday loans as a quick fix for financial emergencies.Additionally, the Consumer Protection Act of 2025 will require lenders to provide clear and transparent information about the terms of their loans, including all fees and charges. This transparency is designed to empower consumers to make informed decisions about their borrowing options and avoid falling into debt traps.Furthermore, the legislation includes measures to strengthen debt collection practices in the state. Debt collectors will now be required to provide consumers with a written notice of the debt owed and a clear explanation of their rights under the law. This provision aims to prevent abusive debt collection tactics and ensure that consumers are treated fairly and respectfully.In a statement, Governor Greg Abbott praised the new legislation as a crucial step towards ensuring that all Texans have access to fair and affordable credit options. "No Texan should be taken advantage of by unscrupulous lenders or debt collectors," he said. "This new law will help level the playing field and protect consumers from financial exploitation."The Consumer Protection Act of 2025 has already garnered widespread support from consumer advocacy groups, who have long called for stronger protections for borrowers in Texas. With this new legislation in place, it is hoped that fewer Texans will fall victim to predatory lending practices and experience financial hardship as a result.