Senate Bill 19‑06, filed to update interest limits in chapter 342E of the Texas Finance Code, drew testimony for and against during the Business & Commerce Committee hearing.

Author Senator Creighton told the committee the bill "will expand the interest rates allowed for chapter 342e lenders who extend credit commonly referred to as consumer finance loans," and said Chapter 342E rates "have not been modified in nearly 25 years," which he argued has reduced the availability of small‑dollar credit for many Texans.

Supporters from regulated branch lenders said higher caps would let licensed local companies serve more customers. Austin Clancy, vice president and managing director for public policy at OneMain Financial and president of the Texas Consumer Credit Coalition, said SB 19‑06 "would modernize Texas laws to allow lenders like those in our coalition to provide credit to a greater number of Texans while maintaining our strict underwriting standards." Clancy told the committee many applicants are denied today and that denials push borrowers to unregulated online lenders charging "rates as high as 199%." He said lenders in his coalition operate "430 plus brick and mortar branch locations staffed by Texans and licensed and regulated by the Office of Consumer Credit Commissioner."

Opponents warned a uniform 6‑percentage‑point increase called for in the committee substitute would significantly raise the cost of long‑term small loans. Brianna Gourdley, senior policy analyst at Texas Appleseed, said a prior version of the measure had tied increases to the federal funds rate, which she described as more consumer‑protective because it could move down as well as up. "This is a blanket 6% increase across all 3 of those tiers," she said, and presented a table in her testimony showing that the change would add roughly $1,000 in fees on a $4,500 loan under the bill's framework. Stephanie Mace of AARP Texas said she opposed the proposed 6% increase, stating that "access to affordable credit with fair, reasonable terms is essential, especially for older adults living on fixed incomes," and that higher long‑term rates can trap borrowers in a cycle of debt.

Committee members asked technical questions about customer profiles and fee structures. Clancy told Senator Gulkers that "most of our customers have bank accounts" and that "the same bank that'll loan you $300,000 for a house isn't designed to loan you $15,000 to fix your air conditioner," describing lender economics and servicing costs as drivers of current rate structures. He also said the industry evaluates cost as a combination of cost of funds, servicing, and credit losses. Committee members also asked about additional fees; Clancy said administration and documentation fees are authorized in statute and noted a recent adjustment tying an administration fee to the consumer price index.

Public testimony lasted through multiple witnesses; the committee left SB 19‑06 pending for further consideration.