POSTED: Tuesday, January 8, 2013 - 1:22pm
UPDATED: Tuesday, January 8, 2013 - 5:26pm
EL PASO — El Paso City Council has passed an ordinance that limits what citizens can borrow at so-called Payday Loan businesses, and also ensures that money repaid to lenders pays down the principle amount, not merely mounting loans and fees.
The ordinance, proposed by Representativre Susie Byrd, passed by a 6-2 vote, with reps Robinson and Holguin voting against.
For borrowers, the ordinance means they can not borrow more than 20 percent of their gross monthly pay
Despite existing languiage that only the state can regulate ledners, Dallas, Austin and San Antonio have previously passed limitations on the exchange between Payday lenders and borrowers, and in each case those cities are facing legal challenges. Already there is talk within the lending business that El Paso can also expect a lawsuit to reverse today's decision.