STRATEGIC PRIORITY: Quality of Life
AGENDA DATE: January 27, 2021
COUNCIL DISTRICT(S): All
DEPARTMENT: Department of Code Compliance
EXECUTIVE: Jon Fortune
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SUBJECT
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An ordinance amending Chapter 50, "Consumer Affairs," of the Dallas City Code by amending Article XI (1) providing regulations for credit services organizations and additional requirements for credit access businesses; (2) providing a penalty not to exceed $500.00; (3) providing a saving clause; (4) providing a severability clause; and (5) providing an effective date - Financing: No cost consideration to the City
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BACKGROUND
This item amends Article XI, "Credit Access Businesses," of Chapter 50, "Consumer Affairs," by adding credit services organizations to the already established registration and monitoring program for credit access businesses.
The Department of Code Compliance currently monitors credit access businesses, such as payday lenders and motor-vehicle title loan establishments, through an annual registration and inspection program. Referrals are made to the Community Prosecution Division of the City Attorney's Office for escalated enforcement.
This change is in response to the Texas Attorney General's opinion (KP-0277), issued in November 2019, that affirmatively states that credit services organizations that are not registered as credit access businesses may assist consumers in obtaining extensions of consumer credit in forms other than what the Texas Finance code defines as credit access business transactions.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Ad Hoc Committee on COVID-19 Recovery and Assistance was briefed on Update on the City of Dallas Payday Lending Ordinance on December 3, 2020.
Information about this item was provided by memorandum to the Ad Hoc Committee on COVID-19 Recovery and Assistance on December 17, 2020 with a vote to recommend approval to full City Council.
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