United Way of the Coastal Bend staffers and other area nonprofit employees showed up in force at the Corpus Christi City Council meeting on August 11, 2015 to show support for passing of a new ordinance that will regulate pay day and auto loan companies. The City Council did pass the ordinance which will help protect residents from predatory lendors and lending practices.
Many mid to low-income families turn to pay day lenders when financial issues occur. Many times they are never able to pay off the loan due to inflated interest rates, ranging between 100 - 700%. In 2014, more than 47,000 people in Corpus Christi received a pay day loan which resulted in more than $29 million in fees. When families cannot repay the loans, it sends them into deeper debt, in turn putting a strain on area nonprofits helping these families with food and shelter.
This ordinance is a step in the right direction for helping people become fiscally protected and lessening the negative effects on the community as a whole.