EL PASO, Texas -- Getting a loan usually means you'll pay back with interest. But some lawmakers said some cash advance businesses are taking advantage of soldiers.

Sen. Eliot Shapleigh just got SB 189 passed in the Senate, and now it’s up to the House to make a move. The bill would cap interest rate for cash advance loans at 36 percent for soldiers and their dependents.

“We had to get a loan because we had to put a down payment on a car. We moved into our apartment and needed down payment on that. Everything was stocking up, and he wasn't getting paid enough,” said Irma Hunter, whose husband is a Ft. Bliss soldier.

Hunter said she had been warned about cash advance stores that tend to prey on military families, and charge them interest rates of 100 percent and higher.

They took a chance and applied for quick cash at Omni Financial Military Lending.

“It was for $1,500, and we owe back a little over $2,000. So it's $600 in interest that we have to give them back,” said Hunter.

The Hunters got off easy.

“We've found people here in El Paso charging 1,100 percent interest. Military who are gone overseas sometimes have to take care of things at home. So they go borrow $300, and you end up a year later owing $1,000. It's those kinds of predatory loans we're trying to say, ‘No, do not prey on these soldiers.'

“That's something that everyone in my opinion can afford, whether you're the lowest or highest rank. Anyone can afford a 36 percent interest. That's not that bad, compared to 100 percent,” said Hunter.

The bill would give the state enforcement power. If a cash advance store is caught charging more to military families, the owner could face up to one year jail time and a $100,000 fine.

"Sen. Shapleigh Is grandstanding on this issue. Congress passed a law over two years ago and the U.S. Department of Defense issued detailed regulations capping consumer loans for servicemen on active and their families at a 36-percent APR (annual percentage rate). There’s no reason for Texas to enact separate legislation.

“Sen. Shapleigh’s bill is simply a Trojan Horse that attempts to switch oversight of Credit Service Organizations from the Texas Attorney General to the Texas Consumer Credit Commissioner who would then need additional staff and more taxpayer dollars, simply adding to an already bloated state bureaucracy,” said Julie Hillrichs, spokeswoman for Credit Service Organizations in Texas.

Below are several related bills that have been filed in the Senate this session:

SB 242 would require the Office of Consumer Credit Commissioner (OCCC) to establish a database to which all payday lenders must submit the following information weekly: the amount of cash advanced under each transaction made serviced, or brokered by the person during the preceding week; the amount of transactions made that were outstanding on the last day of the preceding week; the total number of transactions renewed during the preceding week; any alternative payment arrangements that the lender offered; the average monthly income of an individual to whom a cash advance is made under a deferred presentment transaction, and if the person collects that information from individuals; and the total amount of interest, fees, or charges collected by the lender during the preceding week. The OCCC must compile this data into an annual report and provide it to the state legislature. The bill will also require that lenders become OCCC-certified.

SB 243 would make it explicitly clear that Credit Services Organizations (CSOs) such as payday lenders, should not extend credit when they have a relationship with the lender.

SB 609 would give borrowers in foreclosure 45-day notice to vacate property and outline possible remedies to escape foreclosure. Currently, mortgage lenders in Texas must give only 20 days notice before foreclosing property, one of the shortest notice periods in the United States.

SB 1284 would provide the following protections for buyers of subprime loans: prohibits prepayment penalties for subprime loans; prohibits flipping of a loan by a lender, meaning they cannot refinancing a loan that provides no tangible net benefit to the consumer; prohibits negative amortization loans in which the principal continues to grow despite monthly payments from the borrower for subprime loans; prohibits lender financing of credit insurance; requires lenders to schedule a face-to-face or phone meetings with borrowers to provide restructuring options before sending a notice of default; require lenders to provide a notice to borrowers regarding any change in interest rate 120 days prior to an adjustment; adds loans from residential mortgage banks to the list of consumer contracts that must be translated into Spanish; increases the surety bond to $100,000 for finance lenders or brokers of residential mortgage loans; require that notice of default to be sent to a housing counseling agency designated by the debtor; require lender to mail a homeowner's bill of rights specifying the process and setting forth the rights of the borrower regarding contracts with mortgage foreclosure consultants

SB 1518 would regulate refund anticipation loans (RALs), which are short-term, high cost loans secured and repaid by an individual's tax refund from the IRS. The bill would limit interest rates charged to 36 percent a year, including all fees associated with computation of interest.