The Arlington City Council approved new rules Tuesday night for payday lenders in an effort to create more safeguards for consumers.
The vote had been unanimous.
Beginning Jan. 1, all payday and automobile title lending companies within the city is necessary to comply with the regulations that are following
- Limit loans to 20 % of gross income that is monthly
- Limit automobile name loans into the reduced of three per cent of gross income that is annual 70 percent of retail vehicle value
- Limit payment to four installments with repaying at the very least 25 % regarding the principal
- Prohibit renewals or refinancing of installment-payment loans
- Enter with all the town
- Preserve loan documents for at the least 3 years
- Translate loan agreements into Spanish or Vietnamese for non-English speakers
- Offer customers with a listing of non-profit groups that provide customer credit guidance
- Spend up to $500 for every single breach or infraction