Bryan, CS Join Cities Calling for Regulations on Payday, Auto Loan Lenders
The Eagle (TX)
January 8, 2013
Texas cities Bryan and College Station are asking state legislators to help push back against payday and auto title lenders. Thirteen such businesses operate in the Bryan-College Station area, according to the Office of Consumer Credit Commissioner. There is currently a debate about whether lenders should be regulated like banks or credit unions. The United Way of The Brazos Valley says the short-term lenders have a detrimental effect on middle- and low-income families. Of nearly 14,000 local payday loan transactions that took place between January and June 2012, borrowers paid $1.3 million in fees; about 75 percent of borrowers refinanced; and 101 vehicles were repossessed. Alison Prince, vice president of community impact for the United Way of The Brazos Valley, hopes that lenders come under stricter state regulation -- such as restrictions on the amount of interest charged, or provisions allowing borrowers to pay on the principal of the loans. The College Station City Council will look at a staff-recommended resolution this week that calls on the state Legislature and Gov. Rick Perry to take action in the 2013 legislative session.
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