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 and cities over the declare that curently have a ordinance that is standardized lessen the “abusive and predatory financing techniques” of short-term loan providers referred to as payday or automobile name loan providers. These loan providers typically provide little loans at greater rates of interest due for repayment either in the debtor’s next payday or through repayable installments over a length of time.
The ordinance is modeled after having a version crafted by the Texas Municipal League and includes restrictions that restrict the actual quantity of car and payday name loans, and how frequently they could be refinanced.
“It is impacting my region, it is affecting my constituents,” said Chadis. “the very last thing we wish to accomplish is close doors, however these are minor laws which have been imposed for the state. Let us perform some right thing; that’s just just what this is certainly all about.”
Chadis referred to a single story he would heard from the constituent where he took down a $2,000 loan and began making monthly premiums of $250 every month. Read more