Payday Loan City Ordinace Issues
“The Ordinance,” a documentary film created by Deidox Films, will debut at 7 p.m. Thursday July 7th at Grand Avenue Theater, 2809 Oak Mark Drive in Belton.
The film follows the passage of payday loan-related city ordinances across Texas, and prominently features the passage of the Temple city ordinance in December 2015. The showing will be followed by a 30-minute panel discussion with the filmmakers, Temple Mayor Danny Dunn, and local faith and nonprofit leaders who were involved in the passage of the Temple ordinance.
The public is invited to a free showing of the 30-minute film.
Temple City Council deliberated and voted in late 2015 to adopt a city ordinance that has now been passed by more than 30 Texas cities. The ordinance requires payday and auto title businesses to file with the city, provide the loan terms in a borrower’s first language, and put a percentage of each rollover payment toward the principal amount. Previously, rollover fees did not get applied to the principal, but only extended the terms of the loan. Thus, many borrowers ended up paying more in fees and interest than the principal, and still had the entire principal amount to pay off. With the new ordinance in place, effective March 2016, a portion of each rollover fee is applied to the principal.