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 targeted at managing the industry in Lubbock.
Chadis is hoping Lubbock joins the nearly 40 towns over the declare that curently have a standardized ordinance to reduce steadily the “abusive and predatory financing methods” of short-term loan providers called payday or car name loan providers. These loan providers typically offer 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 time.
The ordinance is modeled after a variation crafted because of the Texas Municipal League and includes restrictions that restrict the quantity of payday and automobile name loans, and exactly how frequently they could be refinanced.
“It is affecting my region, it is impacting my constituents,” stated Chadis. “the thing that is last wish to accomplish is close doors, however these are small laws which were imposed through the state. Why don’t we do the thing that is right that’s just what this really is exactly about.”
Chadis referred to 1 story he would heard from a constituent where he took down a $2,000 loan and started making monthly premiums of $250 every month. After seven months he called the lending company to ask just how much he owed, and had been told it absolutely was nevertheless a lot more than $2,000.
The ordinance should 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 will not be any action during the work session or council conference with this product, but Chadis will show the bill and then he’s invited several residents to talk about their experience with payday advances. Continue reading Councilman Chadis trying to manage lenders that are payday