The Arlington City Council approved new rules Tuesday night for payday lenders in an effort to create more safeguards for consumers.
The vote had been unanimous.
Beginning Jan. 1, all payday and automobile title lending organizations within the town would be needed to adhere to the following laws:
- Limit loans to 20 % of gross month-to-month earnings
- Limit automobile name loans towards the smaller of three per cent of gross income that is annual 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
- Enter with all the town
- Preserve loan records 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 guidance
- Spend up to $500 for every infraction or violation