Property Tax Lending: Impact of Conflicting Court Rulings

Two conflicting Texas federal court rulings on whether property tax lending will impact the future of their business. Under state law is it an extension of credit or not?

• Senior U.S. District Judge Harry Lee Hudspeth ruled that property tax loans are an extension of credit governed by the federal Truth in Lending Act (TILA).
• U.S. District Judge Orlando Garcia ruled that allowing property taxpayers to defer the payment of their property-tax obligations doesn’t amount to an offer of credit, so the transactions are not subject to TILA.