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 throughout the declare that currently have a standardized ordinance to decrease the “abusive and predatory financing methods” of short-term loan providers referred to as payday or auto name loan providers. These loan providers typically provide tiny loans at greater rates of interest due for payment either regarding the debtor’s next payday or through repayable installments during a period of time.
The ordinance is modeled after a version crafted because of the Texas Municipal League and includes restrictions that restrict the actual quantity of payday and vehicle name loans, and just how often they could 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 minor laws which were imposed through the entire state. Continue reading “Councilman Chadis seeking to control payday loan providers”