Wed August 8, 2012
How to Complain About Payday Lending Problems
The City of Austin is encouraging consumers to come to city staff with complaints about payday lenders and auto title lenders.
It’s been almost one year since the Austin City Council passed an ordinance that requires lenders to register with the city and to follow restrictions on loan amounts and refinancing.
“Recently, the City of Austin put together a resource – an informational website – for both credit access businesses as well as consumers,” says city spokesperson Patricia Fraga.
Loan customers can visit the site to learn about the city’s guidelines and register complaints. They can also email CABcomplaint@austintexas.gov, or call (512) 974-2466. Lenders can use the site to find registration information.
The requirements council passed stipulate that a loan not exceed 20 percent of the consumers’ gross income, and may not be financed more than three times.
Another of the council’s new requirements is creation of a registry of all licensed short-term lenders in the city. Fraga notes the city began this process in the spring, and currently over halfway finished.