The Arlington City Council authorized brand new guidelines Tuesday night for payday lenders in an attempt to produce more safeguards for customers.
The vote have been unanimous.
Starting Jan. 1, all payday and auto title lending organizations in the city will probably become required to stick to the following regulations:
- Limit loans to 20 % of revenues that is month-to-month
- Limit automobile name loans to the paid down of three percent of gross earnings that are yearly 70 % of retail automobile value
- Limit re re re payment to four installments with repaying at the minimum 25 % linked to the principal
- Prohibit renewals or refinancing of installment-payment loans
- Enroll with the city
- Protect loan papers for at the very least three years
- Translate loan agreements into Spanish or Vietnamese for non-English speakers
- Offer customers with a listing of non-profit teams that offer client credit guidance
- Spend as much as $500 for every single breach or infraction
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