SAN ANTONIO - There's a big city council vote expected this week, keeping car title and pay day loan companies from ripping you off with huge interest rates.
Right now they can jack up rates as high - or higher - than 500%. But that could change Thursday when council members are expected to vote on an ordinance that would drastically reduce the amount of interest these companies can charge people.
Dallas has an ordinance like this, and so does Austin. A lot of people we talked with say it's time San Antonio does too.
Like a lot of people, Rebecca English relies on payday loans to make ends meet.
“I'm a single mom and it's hard,” explains English. “I live check by check, and it's hard for me to make some of the bills sometimes.”
Consumer experts say the average Texan pays $840 for a $300 payday loan -- and $1600 on a $700 car title loan. People that need the loans sometimes can't pay that high of an interest back.
So this ordinance would limit the interest on pay day loans to 20% of the borrower's gross monthly income; it would limit auto title loans to the lesser of 3% of the borrower's gross annual income or 70% of the vehicle value; it would limit loans to no more than four installments or three rollovers or renewals; and it would require the proceeds from each installment or renewal to reduce principal on the loan by 25%.
If you would like to attend the council meeting Thursday, bus service has been organized…
WEST SIDE Pick Up Times:
9am - Frak Garrett Community Center 1226 NW 18th St.
9:30am - Sacred Heart Church 2123 W. Commerce St.
SOUTH SIDE Pick Up Times:
9am - South San Senior Center 503 Lovett
9am - Elvira Cisneros Senior Community Center 517 SW Military Dr.
EAST SIDE Pick Up Times:
9am - Ella Austin Community Center 1023 North Pine
9:30am - Holy Spirit Convent 301 Yucca
9:45am - Claude W. Black Community Center 2805 East Commerce
NORTH SIDE Pick Up Times:
9am - Kenwood Community Center 305 Dora