Councilman Juan Chadis thinks short-term lenders 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 nearly 40 towns and cities throughout the declare that currently have a ordinance that is standardized lower the "abusive and predatory financing methods" of short-term loan providers referred to as payday or car name loan providers. These loan providers typically provide little loans at greater interest levels due for payment either in the debtor's next payday or through repayable installments during a period of the time.
The ordinance is modeled after a version crafted by the Texas Municipal League and includes restrictions that restrict the actual quantity of payday and vehicle title loans, and exactly how usually they could be refinanced.
"It is impacting my region, it really is impacting my constituents," said Chadis. "the very last thing we wish to accomplish is close doors, however these are small regulations which have been imposed for the state.