11 - Credit Access Business report and ordinance

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ORDINANCE NO. AN ORDINANCE OF THE CITY OF PARIS, TEXAS SETTING FORTH REGISTRATION REQUIRMENTS AND CREDIT EXTENSION REGULATIONS FOR CREDIT ACCESS BUSINESSES BY ADDING ARTICLE 5.12, "CREDIT ACCESS BUSINESSES," TO CHAPTER 5, `BUSINESS REGULATIONS," OF THE CITY OF PARIS CODE OF ORDINANCES; AMENDING APPENDIX A, ARTICLE A1.000, "MISCELLANEOUS FEES," TO ADD SECTION A1.005, "FEES RELATED TO CREDIT ACCESS BUSINESSES;" MAKING OTHER FINDINGS RELATED TO THE SAME; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A PENALTY CLAUSE AND PROVIDING AN EFFECTIVE DATE WHEREAS, certain credit access businesses engage in abusive and predatory lending practices, offering easy money with onerous terms and fees to those members of our community who are in financial straits; and WHEREAS, the practices of certain credit access businesses cause members of our community to become trapped in a cycle of short term, high interest loans resulting in large debt and huge payments; and WHEREAS, in the case of motor vehicle title loans, such arrangements often lead to the loss of borrowers' primary assets, their automobiles, which they require in order to get back and forth to work; and WHEREAS, the City Council finds that the terms of this ordinance strike a reasonable balance between the rights of the credit access industry to operate and prosper and providing some minimal consumer protections and that it is in the best interest of the citizens of the city to adopt same; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That Chapter 5, "Business Regulations," of the City of Paris Code of Ordinances be amended to add a new Article 5.12, "Credit Access Businesses," to read as follows: "Article 5.12 CREDIT ACCESS BUSINESSES 5.12.001 Short Title and Purpose. (a) This article may be known and cited as "Credit Access Businesses."