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 aimed at regulating the industry in Lubbock.
Chadis is hoping Lubbock joins the almost 40 towns throughout the declare that currently have a standard ordinance to lower the “abusive and predatory lending techniques” of short-term loan providers called payday or car name loan providers. These loan providers typically offer tiny loans at greater rates of interest due for payment either from the debtor’s next payday or through repayable installments over a length of time.
The ordinance is modeled after a variation crafted because of the Texas Municipal League and includes restrictions that restrict the total amount of car and payday name loans, and exactly how usually they may be refinanced.
“It really 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 have been imposed through the state.