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 directed at managing the industry in Lubbock.
Chadis is hoping Lubbock joins the almost 40 towns and cities over the declare that curently have an ordinance that is standardized reduce steadily the “abusive and predatory lending techniques” of short-term loan providers referred to as payday or automobile name loan providers. These lenders typically provide little loans at greater interest levels due for payment either from the debtor’s next payday or through repayable installments over a length of the time.
The ordinance is modeled after having a variation crafted by the Texas Municipal League and includes restrictions that limit the quantity of car loannow loans promo code and payday name loans, and exactly how usually they could be refinanced.
“It is impacting my district, it is impacting my constituents,” said Chadis. “the thing that is last might like to do is close doors, however these are small laws which have been imposed through the entire state. Let us do the thing that is right that’s just what this really is exactly about.”