The city of Fort Worth will now have a new set of regulations to limit fast-cash stores that some call predatory after a vote Tuesday night.
Fort Worth City Council member Kelly Allen Gray said the regulations will help keep people out of a cycle of poverty.
A week away from Christmas, Brandon Hayes stood outside a Fort Worth cash store empty-handed.
He was hoping to borrow $200 to do some Christmas shopping.
“I have two newborn twin sons. I wanted to get them a few things, get my fiancé a few things,” Hayes said.
But he couldn’t pay the fees the store wanted.
“They wanted almost $300 from me on top of their $200 that I would have borrowed from them. I decided not to do it," he said. “I wouldn’t say I’m disappointed, but really, it’s crazy, like what. It’s too much. I didn’t do it,” says Hayes.
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Tuesday, Fort Worth City Council approved a new set of regulations, 5-3, to limit cash advance loans to 20% of the borrower’s monthly income.
“I understand the hustle, that they’re trying to make some money, but they’re making too much money if I can say so myself,” Hayes said.
He said he was happy the ordinance would regulate payday businesses and the fees they charge.
“I think it’s good. It puts a smile on my face to know that they can’t rip people off out of their money,” Hayes said.
Gray spoke about the loans Tuesday, calling them "predatory."
“We are one of the largest cities here in the state that doesn’t do anything that relates to payday lending. I have to wholeheartedly support it,” she said.
Gray said the new regulations go into effect January 1.
