San Antonio short term lenders could face more regulations

The city of San Antonio, Texas, may begin to increase regulations on payday, title and other short term lenders in the area as a proposed law is awaiting vote by the city council's governance committee. According to the San Antonio Express, the bill would require short term lenders to extend loans worth only 20 percent of a borrower's gross monthly income. For auto lenders, the legislation would create a regulation that limits loans to either 3 percent of an individual's gross annual income or 70 percent of the car's retail value. The number of repayment cycles would be reduced as well as single lump sum repayment refinancing options. Opponents of the bill say that these policies could severely hurt city residents who need alternative finance access. Elsewhere in Texas, consumers will have more short term lending options as TitleMasters recently announced it will be opening up a new location in Fort Worth, reports MELODIKA. Company officials say the decision to expand operations was made because of the economic downturn which left many Americans without viable forms of loans. "One of the reasons we went into the title loan business is because it provides people with an option when no one else will help them," TitleMasters vice president Robert Gaspard said to the source. "Now, we're happy to bring it to Fort Worth as well."