Permian Basin 360: Proposed Payday Loan Ordinance
April 24, 2014
MIDLAND, TX (Big 2 News)-A push to prevent predatory lending in Midland is underway. City leaders say payday lenders operate within a loophole of Texas law, acting as a broker who gives someone a loan for a significant fee, thus avoiding interest limits.
Now, Midland Mayor Jerry Morales is leading the charge to reign in what the Council calls abusive and predatory lending. Mayor Morales hopes a proposed ordinance with a series of restrictions aiming to regulate payday lenders will soon pass the council. According to reports, some cities in Texas have faced lawsuits from payday lending agencies because the lenders do not want restrictions.
“We knew it was going to be a challenge going up against the court systems and trying to regulate these payday lending institutions,” says Morales about the proposed ordinance.
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