Councilman Juan Chadis thinks short-term loan providers are preying on Lubbock’s most vulnerable residents, so he’s gearing up to introduce an ordinance targeted at managing the industry in Lubbock.
Chadis is hoping Lubbock joins the almost 40 towns throughout the declare that curently have an ordinance that is standardized decrease the “abusive and predatory lending techniques” of short-term loan providers referred to as payday or automobile name lenders. These loan providers typically provide tiny loans at greater interest levels due for payment either regarding the debtor’s next payday or through repayable installments during a period of the time.
The ordinance is modeled after a variation crafted because of the Texas Municipal League and includes restrictions that restrict the actual quantity of payday and automobile name loans, and exactly how usually they could be refinanced.
“It’s impacting my region, it really 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 state. Why don’t we do the thing that is right that’s just just exactly what this is certainly exactly about.”
Chadis referred to at least one story he’d heard from the constituent where he took down a $2,000 loan and began making monthly premiums of $250 each month. After seven months he called the lending company to ask just how much he owed, and had been told it had been nevertheless significantly more than $2,000. Read more