Payday Lending Measure Advances
August 15, 2012
Residents of San Antonio, Texas, are expressing support for an initiative to restrict the predatory practices of payday lenders. The city council's Governance Committee voted to send a proposed ordinance to the full council. The measure would limit the size of a payday loan to 20 percent of a borrower's gross monthly income and restrict the amount of an auto title loan to either 3 percent of gross annual income or 70 percent of the vehicle's value, whichever is less. The ordinance also would limit loan renewals to three and set a minimum reduction of the loan principal with each payment. Additionally, payday lenders would be required to register each individual location with the city, pay an annual $50 licensing fee for each site, and maintain certain business records to be available to the city during business hours. If the council adopts the proposal, San Antonio would be one of several Texas cities to set local restrictions on the payday lending industry, following locales like Dallas and Austin.
External web links may expire.
Return to Headlines
Abstract News © Copyright 2008-2013 INFORMATION, INC.