ABC7 El Paso City Council approves new regulations for payday lenders

January 8, 2014

El Paso City Council on Tuesday approved new regulations for payday lenders. City Representatives say they’re trying to curb predatory lending but payday lenders say they’re legitimate business owners already being monitored by the State.

The prior City Council last year passed the ordinance and the new Council, upon reviewing it, on Tuesday voted to implement it this month.

Some of the major provision of the ordinance requires payday lenders to register with the City of El Paso and pay a $390 registration fee and maintain records for three years and make the records available to the City upon request. The ordinance also regulates loans and loan payments. It limits loans to less than 20% of the consumer’s gross monthly income and an auto title loan may not exceed 70% of the retail value of the vehicle.  The loan has to be paid off within four payments and 25% of the principal must be retired in each payment.

Read more here.