City of Austin Amends Existing PayDay Lending Ordinance
As reported in November 2019, the attorney general’s opinion in KP-277 potentially opened the door for “credit services organizations” to offer high-interest extensions of consumer credit other than payday or auto title loans that likely weren’t addressed in earlier versions of city payday lending ordinances. A city wishing to regulate any new predatory lending practice would need to consider either amending its existing ordinance or adopting a new ordinance that encompassed the new loan product.
The City of Austin amended their existing payday lending ordinance in light of KP-277 in August 2020. Interested city officials can view Austin’s amended ordinance here.