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 targeted at managing the industry in Lubbock.
Chadis is hoping Lubbock joins the almost 40 metropolitan areas over the state that currently have a standard ordinance to lessen the “abusive and predatory lending techniques” of short-term loan providers called payday or car name loan providers. These loan providers typically provide tiny loans at greater rates of interest due for payment either from the debtor’s next payday or through repayable installments during a period of time.
The ordinance is modeled after having a variation crafted because of the Texas Municipal League and includes restrictions that restrict the total amount of payday and automobile name loans, and just how usually they could be refinanced.
“It is impacting my region, it really is affecting my constituents,” stated Chadis. “the very last thing we wish to accomplish is close doors, however these are small laws which were imposed for the state. Why don’t we do the right thing; that’s exactly what this really is all about.”
Chadis referred to 1 story he’d heard from a constituent where he took away a $2,000 loan and began making monthly premiums of $250 every month.