City councilors in Bryan, Texas, on Jan. 28 will take a first look at proposed controls targeting businesses that offer expensive, short-term loans.
If passed, the restrictions would include limiting the amount that can be borrowed to 20 percent of a borrower's gross monthly income. That threshold would be lowered to 3 percent for auto title loans, which would have to be paid back in four installments of no less than 25 percent of the principle balance. Short-term lenders also would be required to register with Bryan and maintain three years of records that would have to be produced upon request for city inspection.
Bryan officials say they want to protect cash-strapped residents from abusive and predatory lenders and keep them from getting caught up in a cycle of snowballing debt. Final action on the matter is expected on Feb. 11.