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Councilman Chadis trying to control payday loan providers

Councilman Chadis trying to control payday loan providers

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 directed at managing the industry in Lubbock.

Chadis is hoping Lubbock joins the almost 40 towns over the declare that currently have a ordinance that is standardized lessen the «abusive and predatory financing methods» of short-term loan providers referred to as payday or automobile name loan providers. These loan providers typically provide tiny loans at greater 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 having a variation crafted by the Texas Municipal League and includes restrictions that limit the total amount of car and payday name loans, and just how frequently they could be refinanced.