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 going to be necessary to adhere to the following laws:
- Limit loans to 20 % of gross income that is monthly
- Limit automobile title loans to your reduced of three % of gross yearly earnings or 70 per cent of retail vehicle value
- Limit payment to four installments with repaying at the very least 25 % of this principal
- Prohibit renewals or refinancing of installment-payment loans
- Join using 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 summary of non-profit groups that provide customer credit counseling
- Spend up to $500 for every single breach or infraction