Along with the Catholic Bishops of Texas, Texas Catholic Conference and Catholic Charities Fort Worth have been long time advocates of necessary payday lending ordinances. Over the past few years, cities across Texas have been working hard to implement initiatives that will help protect low-income communities. This past November, the city of Arlington was the first in Tarrant County to set restrictions on payday lenders. The city council voted unanimously on the following ordinances:
-limiting payday loans to 20 percent of a borrower’s gross monthly income
-limiting auto title loans to 3 percent of the borrower’s gross annual income or 70 percent of the vehicle’s retail value
-limiting repayment terms to four installments that cover 25 percent of the principal
-providing documents in Vietnamese, Spanish, and English
-forbidding renewal or refinancing on installment loans
-businesses must register with the city
-businesses must maintain loan records for at least three years
-businesses must provide a list of nonprofit credit counseling services to clients
The planning and zoning committee has passed the first reading on the zoning ordinance and it’s anticipated they’ll approve. Read more about this second ordinance here.