Short term loan industry scrutinized in Lubbock

The Lubbock, Texas, City Council will soon consider a resolution that will ask the state's legislature to create more oversight of short term lenders, reports the Lubbock Avalanche-Journal. Consumer advocates believe that the short term loan industry traps borrowers in a vicious cycle of debt, but the industry argues that its services help consumers in dire financial situations are are only intended for short-term, emergency situations. If the resolution passes at the council, it won't have any effect on laws or regulations. It is simply a symbolic gesture from the city that will urge state lawmakers to act. Lubbock isn't the only city in the state taking action, says the news source. El Paso, Midland, Brownsville and Richardson have already passed similar resolutions, and Dallas and Irving are considering similar moves. The short term lending industry has not become an issue in Amarillo, Texas, but the city is watching the moves made by other cities. "We have not had any complaints about short term lenders," Amarillo Mayor Debra McCartt told the newspaper. "But we are certainly aware that in some cities they have become an issue."