City Of Killeen Passes Payday Loans Regulation

KILLEEN – The City of Killeen is now the third major city in the central Texas location to pass guidelines restricting the operations of credit access businesses. Waco passed a comparable regulation in January and Temple passed theirs in 2014. The regulation is based upon a model developed by the Texas Municipal League and 31 cities have actually passed it so far.The Killeen ordinance will go into effect in 90 days and consists of the following provisions for credit access businesses (Taxis).

  • CABs will need to register with the city
  • If requested by the City, a TAXI needs to submit a Quarterly Reportproviding records of loans, renewals, charges, etc.
  • A loan may not exceed 20 percent of the consumers gross regular monthly income.A car
  • title loanmay not go beyond the lower of: 1)Three percent of the consumers gross annual incomeor 2) 70 percent of the retail value of the motor vehicle.CABs mustuse a
  • income or other paperwork developing income to determine a consumers income.A loanmay
  • not be repaid in more than 4 installations and each installment have to for that reason pay down 25 percent of the principle online forum loan.A loan may not
  • be refinanced more than three times.Every arrangement in between a TAXI and consumer relating to a loanmust be composed in the consumers language of preference CABs should make consumers aware ofnon-profit agencies that provide monetary education and training programs and agencies with money help programs prior to a loan.Any offense is punishable by a fine of not more than$500.