Judge rejects city’s payday loan provider guidelines. City Council takes actions toward relief for real time music venues and ‘legacy’ businesses

Judge rejects city’s payday loan provider guidelines. City Council takes actions toward relief for real time music venues and ‘legacy’ businesses

Austin Municipal Court Judge Ferdinand Clervi struck straight down an area of Austin’s payday lending ordinance in March, governing that the ordinance’s limitations on regularity and level of payments are preempted by state legislation.

That ruling impacted two split situations where the town charged the amount of money shop, which does company beneath the name fast Cash, and ACSO of Texas, conducting business as Advance America, with breaking exactly the same parts of the ordinance.

If Clervi’s ruling is eventually upheld, it will probably imply that Austin, along with other towns and cities which have comparable ordinances in Texas, may not any longer manage to protect customers within the real method in which City Council envisioned whenever it enacted the ordinance.

On Thursday, the town filed appeals both in situations, saying the judge ended up being mistaken as he ruled that state legislation overrules the ordinance’s limitations. Appeals from Municipal Court rulings are incredibly unusual as they are determined by way of a Travis County court at legislation judge.

Paul Lewis, who manages this program that oversees payday lenders’ compliance using the town ordinance, told the Austin Monitor this is basically the very first time there was this kind of ruling and appeal.Read more