Payday lenders were big spenders in the most recent Texas political campaigns - contributing more than $1.6 million to state races in the 2012 election cycle and giving most generously to Republican committee members who soon will be reviewing proposed reforms for their industry.

Storefront lenders - including payday, car title and similar businesses - splurged even more heavily on 2012 campaigns than they did for 2010 state races, according to a Houston Chronicle comparison of contributions reported so far from payday players as identified by the nonprofit Austin-based watchdog group Texans for Public Justice.

And that's likely a harbinger of a larger lobbying spree to come: The industry backed a multi­million-dollar push in the 2011 Legislature to defeat a proposed cap for payday loan rates, which most other states already control.

"Their clout comes from their ability to put some of their profits into politicians," Texans for Public Justice Director Craig McDonald told the Chronicle. "They're not shy about pooling money and going after reps that don't go along with their wishes."

Among the biggest beneficiaries of the storefront lending industry's recent campaign contributions was Sen. John Carona, R-Dallas, who chairs the Senate Committee on Business and Commerce and collected $64,000. Carona insists he's committed to pushing payday reforms and reining in rates in 2013.

More Information Campaign paydays Top recipients of payday lending contributions in 2012 election cycle. 1 Rep. Joe Straus, R-San Antonio: The speaker of the House of Representatives received $131,800. 1 Mark M. Shelton: The unsuccessful Republican opponent of payday reformer Sen. Wendy Davis, D-Fort Worth, received $81,024. 1 Sen. John Carona, R-Dallas: The head of the committee reviewing payday legislation received $64,000. 1 Attorney General Greg Abbott, whose office regularly reviews payday complaints, received $58,500. 1 Gov. Rick Perry: $35,500. 1 Sen. Craig Estes, R-Wichita Falls: The Business and Commerce Committee member received $33,000. Source: Storefront lenders' individual and PAC contributions to 2012 races as reported to the Texas Ethics Commission and identified by Texans for Public Justice.

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"I can't speak for other legislators, but contributions obviously have no effect on my position," he said. "There WILL be legislation to break the cycle of debt and bring down the (annual percentage rates)."

The lenders also contributed $81,000 in an unsuccessful attempt to unseat Dallas Sen. Wendy Davis, a Democrat who's a major advocate of payday loan reforms, campaign finance data shows. Right now, a legal loophole allows lenders to charge fees equal to 500 percent annual interest.

Costly loans

Texas senators in 2011 approved a bill that would have regulated costly loan renewals only to see it die in the House, where Rep. Gary Elkins, R-Houston, himself a payday lender, aggressively defended his peers and his own 12 stores.

However, Elkins reported only $8,500 from his own industry for his latest campaign, while far more powerful House Speaker Rep. Joe Straus, R-San Antonio, received $131,800, records show.

Texas consumers pay a premium for payday loans, new consumer data from the state's 3,300 storefront lenders reveals.

The first $500 payday loans cost about $110 for two weeks, but most borrowers repeatedly renew loans - and fees quickly can top amounts borrowed. More than 17,000 Texans lost their cars, temporarily or permanently, after taking out title loans for short-term cash in the first six months of 2012, that data shows.

Activists concerned

Another big winner of 2012 campaign support was popular Republican State Attorney General Greg Abbott, whose consumer division has fielded hundreds of complaints about lenders' ads, bill collecting and overcharges in recent years. Abbott was not running for re-election this year, but got $58,500 in contributions for his already multimillion-dollar war chest. His office offered no comment.

The attorney general has taken a handful of legal actions against payday troublemakers - going after one El Paso payday lender, as well as an Oklahoma-based company, and also filed suit against a now defunct Houston-based company that collected bills for lenders.

Under the consumer reporting and licensure laws approved by the Legislature in 2011, the Office of the Consumer Credit Commissioner now also plays a role in monitoring complaints.

Payday lenders' oversized campaign investments concern advocates like Lori Henning, executive director of the Texas Association of Goodwills, part of a coalition of anti-poverty and religious organizations that support limits for lenders whose fees can trap borrowers in a debt cycle and drain resources from charities forced to fund bailouts.

"Obviously it's a concern when anybody is giving money and hoping they can influence a vote or a decision - what's difficult is (that) the advocacy groups can't compete in that level. We're nonprofits," she said.

Cities' ordinances

Discussions of more reforms for the 2013 legislative session have already begun.

That debate has been intensified by new ordinances in San Antonio, Dallas and Austin. In all three cities, leaders have acted to fight the "cycle of debt" within their city limits by capping loan renewals even though payday lenders have sued to stop them.

Advocates like Henning hope that the Legislature will limit loan fees, cap renewals and ban particularly aggressive collection practices statewide.

But lawmakers also could consider simply making all or some of a payday loan industry group's voluntary "best practices" part of Texas law - adopting laws that require lenders to follow more specific guidelines for disclosures and loan procedures for example.

Michael Grimes, a public affairs consultant for the loan trade group Consumer Service Alliance of Texas, said he thinks that lenders would support some kind of "final piece of a regulatory structure" if it is similar to his group's "best practices."

Others - like Houston's Rep. Elkins - oppose any more regulation at all.