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 geared towards managing the industry in Lubbock.
Chadis is hoping Lubbock joins the almost 40 metropolitan areas throughout the declare that curently have a ordinance that is standardized reduce steadily the “abusive and predatory financing methods” of short-term loan providers referred to as payday or car name loan providers. These loan providers typically provide tiny loans at higher interest levels due for payment either from the debtor’s next payday or through repayable installments over a length of time.
The ordinance is modeled after a variation crafted by the Texas Municipal League and includes restrictions that restrict the total amount of payday and automobile title loans, and exactly how frequently they could be refinanced.
“It really 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 were imposed through the state. Let us perform some thing that is right that’s just exactly exactly what this really is all about.”
Chadis referred to 1 story he’d heard from the constituent where he took out a $2,000 loan and began making monthly obligations of $250 every month. After seven months the lender was called by him to ask how much he owed, and had been told it had been nevertheless a lot more than $2,000.
The ordinance should be introduced into the council during a work session at 3:15 p.m. […]