The battle to regulate pay day loans - Houston weather, traffic, news | FOX 26 | MyFoxHouston

The battle to regulate pay day loans

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HOUSTON (FOX 26) -

"They say they' ll move outside the city limits and I say don't let the door hit you on the way out."

Mayor Parker isn't playing around.. Wednesday she plans on introducing an ordinance that would crack down on what she considers predatory lending by payday and car title loan outfits. She's not the only one that considers them financial predators. so do some of the people who used to work in the industry.

"When you're in the need for money you will go anywhere you gotta go to get the money. Instead of being honest with you I'm going to tell you what to hear to get the money. Thirty days from now you will realize you shouldn't have done this." Saisd Brad Armeland.

 

There are over five hundred payday and title loan companies in the city, located in mostly poor neighborhoods. Houston in the number on city in the state for car repossessions from these loans..

among the provisions of the proposed ordinance:

-Limiting payday loans to 20 percent of the borrower's gross monthly income

-Limiting payday loans to 20 percent of three borrower's gross monthly income.

-Limiting auto title loans to three percent of the borrower's gross annual income or 70 percent of the vehicle value, whichever is less.

-Requiring loan agreements to be written in easy-to-understand language

 

The loan industry successfully fought against state wide regulation. Mayor parker is not breaking any new ground with this proposal.. but is rather following the lead of other cities.

"It's the same ordinance that passed in Dallas, San Antonio, Austin and nine other cities. Once it passes one quarter of all Texans will be protected under the regulation." Said supporter Mustafa Tameez.

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