Beaumont councilwoman pushes to regulate short term lenders

Beaumont City Councilwoman "Get" Williams-Wright requested a workshop Tuesday to consider the options of passing an ordinance to regulate payday and auto title lenders.

It is a joint effort with the Catholic Charities of Southeast Texas. A spokesperson for the Charity said an ordinance would protect the elderly and low-income who are targets for short term lenders.

Close to 20 Texas cities have enacted business regulations over payday lenders. An ordinance could include different regulations such as requiring lenders to register with the city, limiting loans to 20 percent of the borrower's gross monthly income, capping interest rate and fees or limiting the number of loan renewals.

Wright is urging citizens to contact their council person if they are struggling to pay off short term lenders. A workshop should be scheduled soon and once it is, the item will be placed on an agenda.

Wright encourages anyone struggling with short term loans to attend the workshop and share their story.


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