Councilman Juan Chadis believes lenders that are short-term 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 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 called payday or car name loan providers. These loan providers typically provide little loans at greater rates of interest due for payment either in the debtor’s next payday or through repayable installments over a length of the time.
The ordinance is modeled following a variation crafted because of the Texas Municipal League and includes restrictions that restrict the total amount of car and payday name loans, and exactly how frequently they may be refinanced.
“It really is impacting 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 state. Continue reading “Councilman Chadis trying to control payday loan providers”