Texas Panel Revives TitleMax's Payday Loan Rules Challenge

Law360 (May 12, 2021, 6:53 PM EDT) -- A Texas appellate court has revived TitleMax of Texas Inc.'s lawsuit against the city of Austin challenging ordinances that place restrictions on payday loans and repayment plans, pointing to a recent Texas Supreme Court decision it said cleared the way for the suit to proceed.

The panel found that based on the Texas Supreme Court's ruling in Texas Propane Gas Association v. City of Houston, TitleMax can bring the challenge because the "essence" of the ordinances are civil even though they carry criminal penalties. The Tuesday ruling from the Seventh Court of Appeals in Amarillo reverses a trial court's grant of...

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