Councilman Klein Looking to Create Task Force on Payday Loans

Published 04/08 2014 05:24PM

Updated 04/08 2014 05:51PM

By Monica Yantosh

LUBBOCK, TX -- District Three City Councilman Todd Klein is proposing a citizen task force to look at payday loans.

Councilman Klein said he does believe there is a place and a time for these loans, as a way to get money to people who truly need it. He does, however, believe that there should be more to keep people from getting into a place where they are paying 600 percent or more interest on the loans.

"My goal and my intent and certainly my desire is not to put anybody out of business, but to say we can do things better," Councilman Klein said. "There is a place in the market to assist people, but that is the key word, we are assisting people, when we go at that rate, sometimes we see people come away, quite frankly, worse off for the wear, and that's more often than not the case."

He said the problem is when people who truly need the money are then stuck constantly paying.

"People go, they wind up, because of the continued renewal that they've gotta make, once they get into this sort of vicious cycle, they are literally much worse off than they have been, so we need to improve that situation, I think we can do that, possibly here at the local level if the state fails to do something at the state level," Councilman Klein said.

If the task force is created, they will be asked to study these so called predatory loans, as well as look at what other cities in the state are doing to try to deal with those high rates.

Councilman Klein said he also hopes by creating this task force, it will be sending a message to the state legislature that more needs to be done in the state to help people.

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