Four bills filed in the Senate that would work to restrict short-term lending practices were left pending in committee this week, leaving them little chance of making it through the legislative process before session ends, its author said Thursday.

"Down here lobbyists and corporate interests run the show," said Sen. Eliot Shapleigh, D-El Paso. "During the hearing 20 or more lobbyists working for predatory lenders killed these bills."

Not dissimilar to a bill filed by Rep. Tom Craddick that was left pending in committee in mid-April, Shapleigh's bills would make Credit Service Organizations subject to additional oversight including an interest rate cap of 36 percent, among other things. If passed, the measures presented by Craddick and Shapleigh would affect mostly pay day, car title and other cash-advance lenders offering short-term finance options.

Craddick's house bill would accomplish many of the same goals as the Senate measures by essentially closing a loophole in state regulation that allows short-term lenders to operate as Credit Service Organizations and therefore not be subject to the oversight of financial institutions.

Those in favor of the various bills say car title and pay day lenders prey on citizens already struggling by giving them quick cash when they're in a bind and then putting them on loan extension and repayment schedules that sometimes have them paying back organizations at interest rates as high as 900 to 1,100 percent.

"Ask any Texan if 1,100 percent interest is fair," Shapleigh said. "For decades Texas has had strong usury laws to protect against predatory lenders. Now more than ever we need to put those laws back on the books."

Providers of short-term loans, though, say they're simply filling a need and oppose bills like those left pending in the Senate and House, because they say such restrictions would effectively put them out of business.

"It's a viable industry. It's one that consumers like," said Julie Hillrichs, spokesperson for the industry interest group Consumer Service Alliance of Texas.

Hillrichs said many who take advantage of these short-term loans have weighed their options and choose short-term financing because it's a lower cost alternative to paying late fees on bills, racking up credit card debt or paying fees for bounced checks.

"We take issue with the term 'predatory,'" she said. "Many consumers of short-term loan services are well educated."

The median income of Texans utilizing short-term lending is about $19,000, according to a recent survey of 5,000 by Texas Appleseed, a public interest law organization that promotes social and economic justice. Of the 13 to 23 percent of Texans who report using pay-day type loans, according to the survey, more than 50 percent were single women or single moms.

Some report taking the loans out to make payments for rent, grocery bills and other basic needs, while others say the loans were taken out for unexpected costs like medical bills or funeral arrangements for a family member.

These statistics alone, according to locals who have lobbied in support of Craddick's bill, are enough to show why short-term lenders need more regulation.

Part of the problem, they say, is people get caught in a cycle of short-term loans. For example, if a consumer takes out a $500 loan by putting up a dated check as collateral, they might be given two weeks to repay the loan. If not able to pay at the end of that time, they can instead submit what might be a $150 renewal fee. Some will simply rack up several renewal charges before paying the loan in full, while others will take out another short-term loan to pay off the first.

Some Texas cities have passed zoning regulations that essentially cut down on the number of short-term lenders that can operate in a given vicinity. Several states also have passed regulation banning these types of businesses.

Those in opposition to the bills say their interest rates should not be comparable to annual interest rates set by banks that are subject to caps, since short-term loans typically are given over a period of 14 days. Plus, Hillrichs said, without short-term lenders, many of these consumers would have no where to turn.

"In those six hearings we didn't see anyone standing up and saying we could do this at a lesser cost," she said.

Officials with Texas Appleseed agree alternatives need to be in place. Whether that be though employers offering short-term loans through their business or credit union, direct deposit advances from regulated banks or even through more education programs that would prevent people from needing short-term loans, they say to squelch the growing short-term loan industry, the demand for it needs to be decreased.

At Senate and House hearings, representatives, locals and those in support of Credit Service Organizations said there were few to stand up in opposition of short-term lenders.

According to Shapleigh, that's in part because lobbyists for short-term lenders donated millions to fund state campaigns. He also points out the chair of the finance commission for Texas previously was a vice president at Cash America, which recorded about $80 million in 2009 through operating as a Credit Service Organization.

"When more Texans read how corporate interests and lobbyists impact their lives and pocket books they will vote for change," he said.