Payday Loans On Council Agenda

Payday Loans On Council Agenda
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POSTED: Monday, January 7, 2013 - 7:08pm

UPDATED: Tuesday, January 15, 2013 - 10:31am

Tuesday's El Paso City Council session will include public comment on so-called payday loans, and one city rep's effort to curb the rules on how pawn shops and other lenders operate.

Representative Susie Byrd, citing up to 23-percent interest rates on short term loans, believes many borrowers simply borrow more money than they can afford to pay back.  For some, she says, delinquent loans pile late fee upon late fee, and leave the borrower helplessly in debt.

She wants the Texas state legislature to limit the rates and fees lenders can charge. Cities right now have no authority do make such financial rules. In the interim, she wants to limit limit a borrow's ability to borrow by placing that ceiling at 20 percent of the person's monthly income.

People interested in making comments to Council need to arrive by 8:30 Tuesday morning to sign up as a speaker

Comments News Comments

It's a good way to help our fellows limit their debts. However, getting into debt is a choice. According to several senators, it could be really dangerous for a consumer to use a bank. Banking institutions have access to the consumer's banking account, making abusive practices easier. This is why the group of senators is hoping to outlaw payday loans from banks.

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