So that they can create more safeguards for clients, the Arlington City Council authorized unique directions Tuesday evening for payday lenders.
The vote was indeed unanimous.
Starting Jan. 1, all payday and automobile title lending organizations inside the city will most likely become required to stick to the following legislation:
- Limit loans to 20 percent of revenues this is certainly month-to-month
- Limit automobile name loans to the paid down of three per cent of gross annual profits or 70 per cent of retail car value
- Limit re payment to four installments with repaying at least 25 % from the principal
- Prohibit renewals or refinancing of installment-payment loans
- Enroll with all the current city
- Keep loan papers for at the very least 3 years
- Translate loan agreements into Spanish or Vietnamese for non-English speakers
- Offer customers with a directory of non-profit teams that offer consumer credit guidance
- Spend as much as $500 for every single infraction or breach