HomeMy WebLinkAboutR2013-002s:\legal\our documentslresolutions1131payday lending.doc
RESOLUTION NO. �013-002
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
REQUESTING THE TEXAS LEGISLATURE AND THE GOVERNOR OF TEXAS TO
ENACT LAWS TO REDUCE EXPLOITATIVE PAYDAY LENDING AND AUTO TITLE
LOAN PR.ACTICES; REQUESTING THE TEXAS MUNICIPAL LEAGUE TO INTRODUCE
AND SUPPORT SUCH LEGISLATION; EXPRESSING SUPPORT OF THE CITIES OF
AUSTIN, DALLAS, EL PASO, AND SAN ANTONIO 1N THEIR EFFORTS TO REGULATE
THESE LENDING PRACTICES; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, certain lending practices have recently proliferated in the City of Denton,
Texas, including the offering of certain "payday" loans, auto title and other unsecured
installment loans whereby exorbitant interest rates are charged and collected from customers, in
circumvention of the State of Texas consumer protection laws; and
WHEREAS, efforts have been undertalcen 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 Denton wishes to express these concerns and
urge the Texas State Legislature and the Governor of Texas to 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 and enact legislation that will prevent further exploitative payday
lending practices; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION l. The Texas Legislature and the Governor of the State of Texas are hereby
requested to take action to enact any laws necessary and appropriate to prevent further
exploitative payday lending practices.
SECTION 2. The Texas Municipal League is hereby requested to talce action to
introduce and support legislation to prevent further exploitative payday lending practices.
SECTION 3. The City Council of the City of Denton wishes to express its support of the
City of Austin, City of Dallas, City of El Paso, and the City of San Antonio in their on-going
legislative efforts to regulate these lending practices.
SECTION 4. The City Council of the City of Denton hereby urges the Texas State
Legislature and the Governor of Texas to take action in the next regular session of the State
Legislature in 2013 to enact laws that will end the practices of credit access businesses that hurt
our communities and struggling Texans by charging usurious rates and fees and affirm cities'
right to promote the public welfare and prevent predatory practices by upholding local control, as
permitted by current law.
s:llegal\our documentslresolutions\131payday lending.doc
SECTION 5. The City Council of the City of Denton hereby supports cities' authority to
pass ordinances aimed at curtailing predatory payday and auto title business practices and ending
the cycle of debt and economic drain often caused by these loans.
SECTION 6. The City Council of the City of Denton authorizes and directs the City
Manager to send an official copy of this resolution to the Governor of the State of Texas, the
Lieutenant Governor of the State of Texas, the legislators in whose districts the City of Denton is
located, and the Texas Municipal League.
SECTION 7. This resolution shall talce effect immediately from and after its passage in
accordance with the provisions of the Charter of the City of Denton, and it is accordingly so
resolved.
PASSED AND APPROVED this the � t� day of ,C �i1 �,/�- , 2013
MARK A�-BURR�GH� IVTAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
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BY: ►