HomeMy WebLinkAboutResolution - 2011-R0055 - Request State Action To Prevent Exploitative Payday Lending Practices - 01/27/2011Resolution No. 2011-R0055
January 27, 2011
Item No. 6.10
RESOLUTION
WHEREAS, certain lending practices have recently proliferated in the City of
Lubbock, Texas, including the offering of certain "payday" loans and other unsecured
installment loans whereby exorbitant interest rates are charged and collected from certain
consumers, in circumvention of the State of Texas consumer protection laws; and
WHEREAS, efforts have been undertaken in other cities and states to stem or
outright prohibit similar practices in which often triple -digit interest rates were charged to
consumers; and
WHEREAS, the City Council of the City of Lubbock, Texas, represents the
citizens of the City of Lubbock, Texas; and
WHEREAS, the City Council of the City of Lubbock, Texas senses from the
citizens of the City a significant concern over what are widely perceived to be patently
exploitative, if not predatory, payday lending practices in the City of Lubbock and
elsewhere in the State of Texas, including practices which may exploit that segment of
our population that is most vulnerable to such practices; and
WHEREAS, the City Council of the City of Lubbock shares these same
significant concerns and wishes to express the collective sentiments of the People of the
City of Lubbock, Texas, that the Texas State Legislature and the Governor of Texas
should take appropriate action to prevent further exploitative payday lending practices;
and
WHEREAS, it is critical that the Texas Legislature and the Governor of Texas
give their earnest attention to this matter in the ongoing regular session of the Texas
Legislature and enact legislation that will prevent further exploitative payday lending
practices.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lubbock,
Texas:
1. THAT the Texas Legislature and the Governor of the State of Texas are hereby
requested to take action in the ongoing Eighty-second regular session of the Texas
Legislature to enact any laws necessary and appropriate to prevent further exploitative
payday lending practices; and
2. THAT the City Council of the City of Lubbock, Texas authorizes and directs
the City Manager to send an official copy of this resolution to the Governor of the State
of Texas, Lieutenant Governor of the State of Texas, and legislators in whose districts the
City of Lubbock is located.
January 92011
kRTIN, MAYOR