Texas Senate passes bill to ban deceptive ‘pet leasing’

Senate Bill 361 by Sen. Joan Huffman (R-Houston) seeks to protect consumers from "pet leasing," a form of predatory lending offered by pet stores to finance the purchase of pets. According to Huffman, the regularity of pet leasing has recently increased in Texas, and she seeks to ban the practice.

The offer, which is presented as a loan, is actually a lease with high interest rates and an option to buy at the end of the lease. The consumer may be required to make a balloon payment at the end of the lease to retain possession of their pet. Even if the animal dies or becomes sick, the lease on the pet must be completed.

Frequently, the pets are subject to repossession under the terms of the contract if a payment is missed, which leaves consumers saddled with debt while also jeopardizing the possession of their pet. 

SB 361 passed in the Senate and now goes to the House.

Contact Jeff Huffman at 469-385-6488 or [email protected] for more information.