“Payday loan customers in El Paso, Texas will only be able to borrow 20 percent of their gross monthly income and can only roll over or renew their loans three times under the city’s credit access business ordinance that will take effect next week.”
By: Jer – Trihouse Consulting
So… the payday loan and car title lenders with stores in El Paso will leave the city. They’ll close their locations, lay-off employees, move down the street, and employ the Internet to service their El Paso borrowers.
Consumers will drive further, commercial property lease rates will fall in El Paso, all the ancillary businesses that prosper as a result of PDL and car title loan transactions will suffer as well.
Ultimately, borrowers will be inconvenienced BUT they will still get their loans. And, payday loan and car title loan companies not operating in El Paso will have a competitive advantage over the few lenders remaining in El Paso.
Regulators cannot put an electric fence around El Paso! Jer – Trihouse
Read the original Credit & Collections article here: Credit and Collections – El Paso payday Loan Laws Implemented