How the Payday Loan Industry Works Regulators from the Inside

T he Town of Flower Mound has become the seventh Texas city to adopt an ordinance. Existing Customers Apply Now. As you drive west on the IH service road aka Gateway Blvd. The ordinance will be effective 90 days from passage. What has the state done or not done to reign in predatory lending practices? Most Recent in Health Care: If Texas cities that wish to regulate in this area continue to adopt essentially uniform ordinances, credit access businesses will not be able to use the argument that city ordinances vary from city-to-city if they seek preemption legislation in


What to Bring to the Cash Store

A state representative, who owns several payday loan businesses across Texas, including in El Paso, is under fire. According to the Houston Chronicle, several of . El Paso is preparing to implement an ordinance that would limit the amount of money payday lenders can offer folks who are in need of a little extra cash. Although it was originally scheduled to go. El Paso, TX Cash Advance and Title Loans Are you in the El Paso area and need some extra cash? At the Cash Store, we offer a variety of loan options like installment loans, title loans and cash advances that are a better alternative to getting a payday loan.

3 Simple Steps


The Cash store will be on the right side before you reach Yarbrough drive. From IH heading east, exit Lomaland drive exit Turn west on Montwood Drive and go. Then turn south on Zargoza Road. Drive 1 block south and the Cash Store will be located on left after Chik-fil-a. As you drive west on Pebble Hills Blvd. From Loop exit Pebble Hills Blvd.

Drive a mile west on Pebble Hills Blvd. The Cash Store will be about yards on the right in the strip mall next to the Walmart gas station. From IH exit Zaragoza Road. From Loop exit Alameda Ave. Head west on Alameda. From IH exit Mesa Street exit Head east on Mesa Street about.

Two bus stops located within walking distance of the Cash Store. Bus stop number one located across the street from the Cash Store on the south bound side of Dyer Street. Is Your College Next? Most Recent in Health Care: Most Recent in The Interview: Veronica Escobar is Poised to Make History.

Most Recent in Postcards: Most Recent in Essay: Most Recent in Eye on Texas: Gentrification in East Austin. Transgender Youth in Texas. Most Recent in Poetry: T he Town of Flower Mound has become the seventh Texas city to adopt an ordinance. Of course, the common law rule is that a fee should approximate the amount needed to administer the ordinance.

Thus, the fee amount can be set by each city accordingly. To view the agenda cover sheet, click here. July 26, , Update. While many other states have enacted laws to restrict predatory lending practices, meaningful reforms have failed to pass the Texas Legislature in the last three sessions.

Free of any statewide cap on lending fees, limits on loan rollovers, and other restrictions, the number of payday and auto title loan stores in Texas has exploded with over 2, new storefronts opening in the last six years.

In the absence of state action, Texas cities are stepping up to adopt ordinances to protect their citizens from some of the worst predatory practices of this industry. Payday lending is a practice where a person can walk into a store, typically located in a strip mall, and take a cash advance on his or her next paycheck. The interest rates on the loans are very high. Interest rates, when fees are included, often exceed percent APR. Fifteen states limit the APR to 36 percent.

The products are marketed as two-week or one-month loans, but the vast majority of borrowers refinance, often six to ten times. In addition to the traditional short-term payday loan, companies have started to offer expensive longer term installment loans. Borrowers who fall behind on payments can refinance multiple times; meanwhile, the interest and other fees keep piling up. With the proliferation of the credit access business industry comes increased concerns about the harmful effects of Texas citizens entering a cycle of debt and dependency.

Some cities are also concerned about public safety and the effect the businesses may have on property values. As a result, both the state legislature and a handful of Texas cities have taken steps to regulate this industry. In , the legislature addressed some of these concerns by passing legislation that both requires credit access businesses to provide consumer disclosures regarding their loan products, fees, interest charges, and percentage rates, as well as requires them to obtain a license with the OCCC operating under the oversight of the Finance Commission of Texas , which in turn has some ability to examine these businesses.

Some Texas cities viewed the legislation as insufficient to address the growth in the credit access business industry in their communities, and have since adopted ordinances that place additional restrictions on these businesses.

The ordinances that have been adopted include zoning restrictions, substantive business regulations such as a limitation on the total amount of the loan, or both.

Several bills were filed during the legislative session that would have increased regulation of the credit access business industry. Other bills were filed at the behest of the credit access business lobby that would have preempted all city ordinances regulating the industry, including in some cases generally-applicable zoning and other health and safety ordinances.

In the end, no legislation dealing with payday and auto title lenders passed in Consequently, under current law cities are not expressly prohibited from adopting ordinances regulating the credit access business industry in any way, including ordinances restricting business practices. There are likely to be more at the time of this publication.

All of these cities — except for Balcones Heights — have been sued by the credit access business industry, with the industry claiming that the cities are preempted from regulating credit access businesses since the legislature gave the OCCC some authority to regulate in Balcones Heights has suspended enforcement of its ordinance pending the outcome of the San Antonio lawsuit. This argument falls flat in two ways. First, only six out of roughly 1, Texas cities have adopted ordinances.

Second, the ordinances adopted by these six cities are all but identical in how they regulate the lending practices of credit access businesses. Key features of all six ordinances include the following provisions:.

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The El Paso Times ran and article on the subject, and three Texas senators sent a letter to the Chairman of the Texas Finance Commission asking for his resignation. October 25, , Update Some cities, in addition to or in lieu of lender transaction regulations, have enacted various land use measures to address the proliferation of the lender. January – The Internal Audit Office creates a process to conduct Payday Loan Reviews as a result of City Council establishing a Payday Loan Ordinance. July – The Chief Internal Auditor was appointed Medicare Compliance Officer. ORDINANCE NO. _____ / PL# ORDINANCE NO. _____ AN ORDINANCE AMENDING TITLE 5 (BUSINESS LICENSE AND PERMIT REGULATIONS) OF THE EL PASO CITY CODE BY ADDING CHAPTER (CREDIT ACCESS BUSINESSES) IN ORDER TO SET FORTH REGISTRATION REQUIRMENTS AND .

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