Amarillo City Council talking about regulating payday lending - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Amarillo City Council talking about regulating payday lending

Amarillo, TX -According to some of our city council members, payday lending is a problem in our area.

That's why they've decided to start discussing some ways to regulate it.

City Council Member, Lilia Escajeda says it is not hard to spot payday lending services in Amarillo. "They're virtually everywhere," said Escajeda.

And many might think payday lending is the way to go because these loans are fast and don't require a credit check, but these loans can put people in more trouble. "In Texas, we have the highest payday lending rate of all the states that allow payday lending," said Escajeda.

According to Escajeda, interest rates can sometimes be over 500%. "I think it's time to do something about that," said Escajeda.

Right now, the state of Texas does not regulate payday lending. So, Amarillo City Council is looking at other cities in Texas to see if what they are doing could work in Amarillo.

"In some instances they've regulated where they can be located in other areas and regulating how many times someone can refinance a loan," said Escajeda.

In terms of auto title loans, is the city is considering not being able to take out a loan that is larger than the value of the car. City Council Member, Brian Eades says somebody needs to step in to talk about essential fairness. And although many council members agree pay lending is unfair, some are concerned about what ordinances to enforce.

"Texas has always been a place of rugged individualist and we're very hesitate to limit people rights, but I think more and more Texas lawmakers are becoming sensitized to this issue," said Eades.

Right now, The City Council is setting up a time and date when they can engage with community members to talk about some of the issues with payday lending.

Once the city as decided on an ordinance, they will discuss the violations associated with it.
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