August 1st in Bryan and August 27th in College Station are the dates of new regulations for payday lenders.
Bryan’s community services manager, Alsie Bond, says there will be restrictions on how much customers can borrow.
For instance, payday loans not exceeding 20 percent of a customer’s monthly gross income, an auto title loan can not exceed three percent of the annual income or 70 percent of the vehicle’s value, and single repayment lump sum loans may not be renewed more than three times.
Bond says the new rules won’t apply to loans made before the start date.
Click HERE for more information from the Bank On Brazos Valley website.
Click below for comments from Alsie Bond, visiting with WTAW’s Scott DeLucia:
In a related item from the Associated Press:
IRVING, Texas (AP) — Ace Cash Express has agreed to pay $10 million in a settlement with federal regulators who accused the Irving-based payday lender of illegally harassing borrowers to collect debts and get them to take out additional loans. The company will pay a $5 million fine and return $5 million to affected customers. Ace didn’t admit wrongdoing in the settlement.