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 geared towards managing the industry in Lubbock.
Chadis is hoping Lubbock joins the almost 40 urban centers throughout the declare that curently have a standard ordinance to decrease the “abusive and predatory financing methods” of short-term loan providers referred to as payday or car name loan providers. These loan providers typically provide little 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 total amount of payday and vehicle name loans, and just how usually they may be refinanced.
“It is impacting my region, it is impacting my constituents,” stated Chadis. “the thing that is last might like to do is close doors, however these are small laws which were imposed for the state. Let us perform some right thing; that’s exactly exactly just what it is exactly about.”
Chadis referred to 1 story he’d heard from the constituent where he took away a $2,000 loan and began making monthly premiums of $250 each month. Continue reading “Councilman Chadis seeking to control payday loan providers”