Councilman Juan Chadis believes lenders that are short-term preying on Lubbock’s many vulnerable residents, so he’s gearing up to introduce an ordinance targeted at managing the industry in Lubbock.
Chadis is hoping Lubbock joins the almost 40 towns throughout the declare that currently have a ordinance that is standardized lessen the “abusive and predatory financing techniques” of short-term loan providers referred to as payday or automobile name loan providers. These loan providers typically provide little loans at greater rates of interest due for payment either in the debtor’s next payday or through repayable installments during a period of the time.
The ordinance is modeled following a variation crafted by the Texas Municipal League and includes restrictions that restrict the actual quantity of payday and vehicle name loans, and exactly how usually they may be refinanced.
“It is impacting my region, it is impacting my constituents,” stated Chadis. “the thing that is last might like to do is close doors, however these are small laws which have been imposed for the state. Let us perform some right thing; that’s exactly just what it is all about.”