AARP Applauds El Paso City Council Vote to Restrict Payday and Auto-Title Lenders

“The El Paso City Council has taken a courageous step today on behalf of its citizens in the face of intense pressure by the payday lending lobby. The ordinance passed today sends a powerful signal that abusive lending practices that trap borrowers in an endless cycle of high-interest debt will not be tolerated in El Paso. “We applaud City Rep. Susie Byrd for introducing and championing the measure and the City Council for its vote. “Payday and auto title loan businesses prey on economically vulnerable citizens, offering them ‘fast cash’ loans that can carry fees in excess of 500 percent APR. Families often pay many times over the original amount borrowed for these small dollar loans, leaving them with long-term financial problems. “By placing limitations on the amount that can be lent and how many times a loan can be renewed, this ordinance gives borrowers a fighting chance to repay loans in a timely manner and avoid being trapped in a cycle of debt. “Today the City Council stood up for its residents by supporting fair and responsible lending and protecting the financial security of El Pasoans from abusive lending practices.”