Fort Worth Reviews Payday Loan Rules
Of Texas Standard:
New rules from the US Consumer Financial Protection Bureau regulating payday lenders have been supposed to take effect August 19. The rules – established in 2017 – are said to have regulated the ability of lenders to withdraw funds directly from a person’s bank account. Those rules are on hold for now as the agency and a business group of payday lenders are challenging it in court.
In Texas, nearly 70 cities have their own rules governing payday loans and other high interest loans. Corn there is a notable obstacle: Fort Worth is the largest city in Texas with no law on the books that regulates payday lenders and auto titles.
“They take a lot of interest rates with them and sometimes a lot of fees,” Ranker explains. “So while it may seem like you’re going to pay back $ 500, sometimes borrowers pay double or more.”
Ranker says the lack of regulation of payday loans in Fort Worth stems from a “very cautious [city] advice. “As other cities have cracked down on payday lenders, Ranker says some Fort Worth officials are also starting to take action.
Council member Kelly Allen Gray, who represents a district where many low-income residents live, is leading payday loan rules, Ranker said.
The options being considered in Fort Worth include zoning restrictions that would govern where payday lenders can locate. Ranker says the measure has broad support in city council. Members also support the provision of financial education to residents on the high costs of payday loans, as well as the provision of credit counseling services.
Ranker says any new initiative in Fort Worth will take a few months.
Written by Shelly Brisbin.