Tuesday
Councilman Juan Chadis thinks short-term lenders are preying on Lubbock’s many vulnerable residents, so he’s gearing up to introduce an ordinance directed at regulating the industry in Lubbock.
Chadis is hoping Lubbock joins the almost 40 metropolitan areas over the declare that currently have an ordinance that is standardized lower 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 little loans at greater rates of interest due for payment either regarding the debtor’s next payday or through repayable installments during a period of time.
The ordinance is modeled after having a variation crafted because of the Texas Municipal League and includes restrictions that restrict the quantity of payday and vehicle name loans, and exactly how usually they could be refinanced.
“It really is affecting my region, it 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 entire state. Why don’t we do the right thing; that’s exactly what that is exactly about.”
Chadis referred to a single story he’d heard from the constituent where he took away a $2,000 loan and began making monthly obligations of $250 each month. After seven months the lender was called by him to ask just how much he owed, and had been told it absolutely was nevertheless significantly more than $2,000.
The ordinance will undoubtedly be introduced to your council during a work session at 3:15 p.m. afternoon ahead of the council meeting at City Hall thursday. There defintely won’t be any action during the work session or council conference with this item, but Chadis will show the bill and he’s invited a few residents to talk about their knowledge about pay day loans. Continue reading “Let me make it clear about Councilman Chadis seeking to control lenders that are payday”