The Arlington City Council approved new rules Tuesday night for payday lenders in an effort to create more safeguards for consumers.
The vote ended up being unanimous.
Beginning Jan. 1, all payday and automobile title lending organizations when you look at the town is supposed to be needed to comply with the regulations that are following
- Limit loans to 20 % of gross month-to-month income
- Limit car name loans towards the lower of three % of gross income that is annual 70 % of retail vehicle value
- Limit payment to four installments with repaying at the least 25 % regarding the principal
- Prohibit renewals or refinancing of installment-payment loans
- Join aided by the town
- Preserve loan documents for no less than 36 months
- 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 breach or infraction