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City of El Paso May Place New Restrictions on Payday Loans

El Paso, Texas, is considering a zoning change that would restrict locations for new payday and auto title lenders. The change would not affect businesses already in operation.

If passed, credit-access businesses and pawn shops could not open within 1,000 feet of each other, 300 feet of residential districts, or 500 feet of any freeway. They would not be able to open in shopping centers or as part of another business, such as gas stations and grocery stores.

“The law is trying to get them away from low-income areas, schools and the freeway,” said city Rep. Claudia Ordaz. “I hope that municipalities in the county take the initiative to limit their presence out there as well.”

Earlier this year, El Paso became the fourth Texas city to pass an ordinance for payday lenders. The city limited payday loans to 20 percent of a borrower’s gross monthly income and restricted title loans to either 3 percent of income or 70 percent of the vehicle’s value. Borrowers also can only renew the loan three times.

City of El Paso May Place New Restrictions on Payday Loans

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