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Bryan Council Considering Regulating Payday Lenders

Regulating payday lenders in Bryan is on Tuesday’s city council agenda.

If approved, regulations for Bryan businesses who offer short term loans at high interest rates includes capping what can be borrowed at 20 percent of a borrower’s gross monthly income. The amount of an auto title loan may not exceed three percent of the borrower’s gross monthly income or 70 percent of the retail value of the vehicle. The loan has to be repaid in four installments of at least 25 percent of the principal. These businesses will also have to register with the city and keep three years of records and make them available for city inspection.

City staff say they want to protect citizens who are in a financial hardship from abusive and predatory lenders from becoming trapped in a cycle of short term, high interest loans resulting in large debt and huge payments.

The proposed ordinance receives preliminary consideration Tuesday and final action on February 11th.

Click HERE to read the proposed ordinance and background information.

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Posted by on Jan 27 2014. Filed under Featured Stories, News.
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