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Let me make it clear about Councilman Chadis seeking to manage lenders that are payday


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 geared towards managing the industry in Lubbock.

Chadis is hoping Lubbock joins the almost 40 towns and cities throughout the declare that curently have a ordinance that is standardized reduce steadily the "abusive and predatory financing techniques" of short-term loan providers referred to as payday or car name loan providers. These lenders typically provide little loans at higher 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 having a variation crafted because of the Texas Municipal League and includes restrictions that restrict the quantity of payday and automobile name loans, and how usually they could be refinanced.

"It is impacting my region, it is impacting my constituents," stated Chadis. "the thing that is last wish to accomplish is close doors, however these are small laws which have been imposed for the state. Let's do the thing that is right that's exactly what this is certainly all about."

Chadis referred to 1 story he would heard from the constituent where he took away a $2,000 loan and began making monthly premiums of $250 each month. After seven months he called the financial institution to ask just how much he owed, and had been told it absolutely was nevertheless a lot more than $2,000.

The ordinance is going to be introduced to your council throughout a work session at 3:15 p.m.

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