HomeMy WebLinkAbout01-10-13-2d - Resolution - 01/10/2013 RESOLUTION NO.01 - 1 O
• A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS,
REQUESTING THAT THE TEXAS STATE LEGISLATURE AND THE GOVERNOR OF TEXAS TAKE
ACTION TO STOP USURIOUS LENDING BY PAYDAY AND AUTO TITLE LENDERS AND SUPPORT
CITIES' AUTHORITY TO PASS ORDINANCES TO REGULATE PRACTICES BY CREDIT ACCESS
BUSINESSES' THAT MAY NEGATIVELY IMPACT THE CITY'S ECONOMICALLY VULNERABLE
CITIZENS.
WHEREAS, the City Council of the City of College Station, Texas, represents the citizens of the City of College
Station; and
WHEREAS, citizens of the City of College Station are deeply concerned about the harmful effects of payday and
auto title lending practices in our community and throughout Texas; and
WHEREAS, in the state of Texas there are over 3,000 of these unlicensed and unregulated lending storefronts
making over $3 billion in high -cost loans to Texas families each year; and
WHEREAS, there are at least thirteen of these loan businesses in the local community promising "easy credit" only
to economically damage borrowers with annual percentage rates upwards of 500% and loan terms that often pull
borrowers deeper into debt; and
WHEREAS, in response to the targeting of working families, senior citizens, and military families who struggle to
pay rent, bills, and provide for other basic needs, at least sixteen (16) states and the District of Columbia have
adopted 36% or lower annual percentage rate cap for these small loans; and
• WHEREAS, upon the Department of Defense's fording that these loans, "undermine military readiness, harm the
morale of troops and their families, and add to the cost of fielding an all - volunteer fighting force ", the federal
government enacted a rate cap of 36% for loans up to 90 days and up to $2,000 to protect certain members of the
military from exploitation; and
WHEREAS, other states have implemented provisions such as rate caps, fee caps, prorated fees, and limits on the
total number of loans per consumer to ensure that borrowers can actually repay loans on time; and in these states,
payday and auto title businesses continue to operate in compliance with these standards; and
WHEREAS, the City Council of the City of College Station, Texas, sees a crisis in this community and it is vital that
the Texas State Legislature take immediate action to support and enforce fair consumer lending standards in Texas;
now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS:
PART 1: That the City Council hereby urges the Texas State Legislature and the Governor of Texas
to take action in the next regular session of the State Legislature in 2013 to enact laws that
will:
o End the practices of credit access businesses that hurt our communities and
struggling Texans by charging usurious rates and fees;
o Affirm cities' right to promote the public welfare and prevent predatory practices
by upholding local control, as permitted by current law.
• PART 2: That the City Council hereby supports cities' authority to pass ordinances aimed at
curtailing predatory payday and auto title business practices and ending the cycle of debt
and economic drain often caused by these loans.
• ADOPTED this 10 day of January, A.D. 2013.
A'l"l'EST: APPROVED:
City Secre MAYOR
APPROVED:
FOOda. Ktril4VS
City Attorney
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