Councilman Juan Chadis thinks lenders that are short-term preying on Lubbock’s many vulnerable residents, so he’s gearing up to introduce an ordinance directed at managing the industry in Lubbock.
Chadis is hoping Lubbock joins the almost 40 towns over the declare that currently have a standardized ordinance to lower the „abusive and predatory financing techniques“ of short-term loan providers called payday or automobile name loan providers. These loan providers typically provide tiny loans at greater interest rates due for payment either from the debtor’s next payday or through repayable installments over a length of time.
The ordinance is modeled after having a variation crafted by the Texas Municipal League and includes restrictions that restrict the quantity of car and payday name loans, and exactly how often they may be refinanced.
„It is impacting my region, it really is impacting my constituents,“ stated Chadis. „the very last thing we wish to accomplish is close doors, however these are small laws which were imposed through the state. Why don’t we perform some thing that is right that’s just what that is all about.“
Chadis referred to 1 story he’d heard from the constituent where he took away a $2,000 loan and began making monthly premiums of $250 each month. After seven months he called the lending company to ask just how much he owed, and had been told it had been nevertheless significantly more than $2,000.
The ordinance is going to be introduced towards the council throughout a work session at 3:15 p.m. (Pokračování textu…)