Today, the Texas House Committee on Defense and Veterans' Affairs has an opportunity to vote out a Senate bill authorizing the state to enforce a federal law protecting our military personnel from becoming trapped in a cycle of debt associated with high-cost payday and auto title loans.

The Senate unanimously passed the measure without debate, yet so powerful is the payday lobby, that the Office of Under Secretary of Defense recently wrote committee members urging bill passage, "which is important to the readiness of Service members, their well being and that of their families serving in Texas."

Congress passed a 36 percent rate cap on payday, auto title and tax refund anticipation loans to the military in 2007 after a Defense Department report found that "predatory lending undermines the morale of troops and their families." That report described how a single parent in the active duty Air Force took out a $400 loan, renewed it multiple times when she could not repay in full on payday, and owed $3,000 before she asked for help.

State Sen. Elliot Shapleigh, D-El Paso, and state Rep. Joe Farias, D-San Antonio, are sponsoring legislation to allow the state's Office of Consumer Credit Commission (OCCC) to enforce the 36 percent federal payday rate cap on certain payday, auto title and tax refund anticipation loans.

The National Conference on Insurance Legislators adopted a resolution in March urging "states to modify their statues to allow for full enforcement" of the federal rate cap, noting that only 21 of the 39 states authorizing payday loans have authority to enforce "protection for Service members and their dependents."

Texas payday lenders insist that they are complying with the 36 percent federal rate cap on loans to military personnel — a far lower rate than the average 500 percent APR charged other payday borrowers in the state. Still, payday lobbyists are working hard to prevent a House floor vote.

Why? Based on testimony, it appears that they do not want the OCCC to have any oversight authority over their industry — even if it means enforcing a federal law protecting military families that has been on the books for two years.

To avoid OCCC oversight, payday and auto title lenders are exploiting a loophole in Texas law that allows them to operate as unlicensed credit services organizations. They contend that the state regulations and consumer protections required of other Texas lenders should not apply to them because they only broker and service these loans.

In reality, payday and auto title lenders make much of the profit from these transactions. They can charge high fees for every two- to four-week period that the loan is not paid off in full, which explains why one major payday lending company based in Texas recently reported annual revenue in excess of $1 billion.

Texas is home to a large number of military bases. With the economic benefits this brings to our State comes an obligation to stand up for our troops and uphold their rights.

The bill deserves to be heard on the House floor this session. Our representatives should have an opportunity to join their Senate colleagues in passing Senate Bill 189 — and to show their support for our troops in Texas.