Conference praises Austin’s payday zoning restrictions

The Texas Catholic Conference extended its appreciation to the Austin City Council for unanimously passing new zoning restrictions on payday and auto title lenders at its April 26 meeting.

Payday lenders have become controversial financial instruments in recent years, especially for trapping poor families in cycles of debt and routinely charging up to 500% interest on short-term loans. The new ordinance will support family financial stability and beneficial economic development by impeding the proliferation of predatory lenders, a Conference spokesman said.

Austin Bishop Joe Vásquez was instrumental in the success of this ordinance, leading a coalition of religious and community leaders in support of the zoning ordinance. Bishop Vásquez extended his own appreciation to the city leaders for the ordinance.

“This ordinance encourages beneficial economic development, supports family financial stability and promotes Austin as a leader in ensuring fair lending policies. I’m hopeful that this ordinance will provide relief for families and improve our neighborhoods and communities,” Bishop Vásquez said.

Several Texas cities, including San Antonio, Brownsville, Dallas, Garland and Richardson, have passed similar zoning ordinances.

The new ordinance expands on a previous ordinance the city of Austin enacted last year that restricted payday and auto title loan terms and rollovers. Anyone in Austin facing difficulty in paying off a payday or auto title loan that can contact the city of Austin at (512) 974-2999 or by email at [email protected].