Councilman Juan Chadis thinks short-term loan providers are 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 towns and cities throughout the declare that curently have a standard ordinance to reduce steadily the “abusive and predatory financing techniques” of short-term loan providers referred to as payday or car name loan providers. These loan providers typically provide tiny loans at greater interest levels due for payment either regarding the borrower’s next payday or through repayable installments during a period of the time.
The ordinance is modeled after having a variation crafted by the Texas Municipal League and includes restrictions that restrict the amount of car and payday name loans, and exactly how frequently they may be refinanced.
“It is impacting 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 have been imposed through the entire state. Let us perform some thing that is right that’s just just what this really is all about.”
Chadis referred to at least one story he would heard from the constituent where he took down a $2,000 loan and began making monthly premiums of $250 every month. (mais…)