Klein proposes new rules for payday loan businesses - KCBD NewsChannel 11 Lubbock

Klein proposes new rules for payday loan businesses

LUBBOCK, TX (KCBD) -

Lubbock City Councilman Todd Klein wants to change the rules for payday loan businesses.

Concerned about the high interest rates that some borrowers have to pay, Klein said he wants to form a citizen task force to develop a reform plan and make recommendations to state officials.

Klein says he doesn't want to completely get rid of payday lender services, he just wants to reduce what he calls predatory practices.

As a councilman, Klein said he feels like it is his responsibility to help people make the best choices about their finances.

Klein has researched other state and city approaches to this issue, which include registering with the city, setting borrowing limits, and putting caps on how many times they can renew a loan.

However, some of those rules have led to lawsuits.

Klein said he does not know if any of those approaches are the answer and wants to explore all the options.

"My goal is to work to represent you as hard as I can," he said, "but never to be so forward-leaning as to get us in a lawsuit."

He's pitching the idea at this week's city council meeting on Thursday.

Klein will also bring forward an item to fund a position that will begin to establish a training and development division at the city.

This, he said, will be the most effective investment and will save money in the long run.

Copyright 2014 KCBD. All rights reserved.

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