The Arlington City Council approved new rules Tuesday night for payday lenders in an effort to create more safeguards for consumers.
The vote had been unanimous.
Beginning Jan. 1, all payday and automobile title lending organizations within the city is likely to be needed to comply with the following laws:
- Limit loans to 20 % of gross month-to-month earnings
- Limit automobile name loans towards the reduced of three % of gross income that is annual 70 per cent of retail automobile value
- Limit repayment to four installments with repaying at the least 25 % of this principal
- Prohibit renewals or refinancing of installment-payment loans
- Join using the town
- Preserve loan documents for no less than 36 months
- Translate loan agreements into Spanish or Vietnamese for non-English speakers
- Offer customers with a listing of non-profit groups that offer customer credit guidance
- Spend up to $500 for every infraction or violation
“I’m pleased,” stated Rozanne Veeser, president for the Fort Worth Council when it comes to community of St. Vincent de Paul and a proponent for the guidelines. “I genuinely believe that’s one step when you look at the right way.”
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Veeser and lots of others stuffed the Arlington City Council chambers Tuesday to exhibit their help when it comes to laws. (more…)