Payday Loans in Austin
Particularly, payday loan lenders are okay in Austin, as well as in the rest of Texas. There are about 100 payday lender storefront offices in the city belonging to Ace Cash Express, Speedy Cash, Check’n Go, Quik Cash, and Advance America. They have their own websites, where borrowers can learn more about them and apply for a loan online. Payday lenders are not as strict on borrowers about credit histories and, for the most part, grant loans to users, who are not always okay with banks. They do require, however, that borrowers have a stable income and ask to submit documents proving that.
Payday lending is legal in Austin. It is regulated by the local legislation, which is not quite so tough on lenders. Particularly, it specifies only a minimum loan term (7 days) and does not specify a maximum one. It does not specify maximum charges or fees either (they depend on loan size); APRs tend to be quite high (662%). Rollovers are not allowed.
The law seems to be on the lenders’ side rather than the borrowers’. The latter is at a disadvantage and must always be sure they can pay off on time to avoid indebtedness. Criminal acts against borrowers are prosecuted.
Payday Loan Local Limitation
- Resolution No. 20110818-079
- Adopted on August 18, 2011
- Signed by Shirley A. Gentry (City Clerk)
- A distance between store locations – at least 1,000 feet;
- A distance between residential lot and store location – at least 200 feet;
- A distance between the rights-of-way of Interstate Highway 35, U.S. Highway 183, U.S. Highway 290, Texas StateHighway Loop 360, Texas State Highway Loop 1, and Texas StateHighway 45 and payday loan store location – at least 500 feet;
- Stores are prohibited in the East Austin, Waterfront, or University Neighborhood overlay districts.
- Store must be only in a freestanding building.
Austin Payday Loan City Ordinance
- Ordinance No. 20110818-075
- Passed on August 18, 2011
- Signed by Shirley A. Gentry (City Clerk), Lee Leffingel (Mayor), Karen m. Kennard (City Attorney)
The payday loan city ordinance was enacted in 2012 (amended in 2015). When issuing a payday loan, lenders (Credit Access Businesses) must comply with the following obligations:
- Lenders must be licensed by the City of Austin, and the license must be publicly visible.
- Copies of documents to be signed by the client should be provided upon request.
- The lender cannot issue a loan to a client if it exceeds 20% of his gross monthly income.
- The lender is obliged to check the client’s income: paychecks, a letter from the employer, tax return can be used for this.
- For installment payday loans – 4 equal installments max, no refinance and renew options for installment loans.
- For single-payment payday loans – 3 renews or refinances max, the minimum payment for renewal must reduce the principal amount of the loan by 25%.
- The total amount of the loan includes all charges (principal, fees, rates).
For Complaints in Austin:
City of Austin Telecommunications & Regulatory Affairs
1. Call Number: 3-1-1 or 512.974.2000
2. Send a payday loan complaint online here.
State of Texas Office of Consumer Credit Commissioner
www.occc.texas.gov/consumers, call 800.538.1579
Payday Loans Alternatives in Austin
- Community Loan Center of Austin (a non-profit organization with loans up to $1,000 and low fees)
Austin Payday Loan Stats
- The 2012 year, consumers in the Austin area spent $33 mill spent in payday and auto-title loans;
- The 2019 year, in the Austin-Round Rock-San Marcos area, were 97 store locations that made the next numbers:
- the amount of new payday loans was $42 mln
- fee charges were $55 mln
- refinances were $45 mln
- the average loan term for a single payday loan was 17 days
- the average loan term for an installment payday loan was 169 days
- the average fee for every $100 single payday loan was $22
- the average fee for every $100 installment payday loan was $167
Office Locations vs Household Income
Austin is the state capital of Texas, an inland city bordering the Hill Country region. It has 40 payday loan stores. The average household income is large but still, there are a greater number of payday loan stores. Let’s understand the relationship between the average household income and the number of payday loan stores.
According to the map, the Northern side of Austin has a greater number of loan stores as compared to the south side of the city. The area covering sunset valley (southern Austin) which has an average household income of $50,000 has a greater number of loan stores. Additionally, the area around the east riverside has an average income of $40,000 with a higher density of loan stores. The area that covers Zilker park, Barton Hills, Tarrytown, and nearby have an average income of $100,000 and there are no payday loan stores available. The area towards North Austin has an average income of $55,000 and has payday loan stores. Mueller, Windsor Park, and Cherrywood areas have higher average income i.e., around $60,000. Hence, it is clear from the map that the areas with the smaller average income have a greater number of payday loan stores as compared to the areas which have larger average incomes.
Austin General Information
Austin is a major political, industrial and cultural center of Texas, the USA, and the state’s capital. Located in Travis County, a lush subtropical region, it attracts citizens from around the United States, neighboring countries, and from overseas. It is placed at a crossroads of several economic and cultural pathways and is home to quite a number of business and arts venues.
The city originated in 1839 as Waterloo and was changed to Austin later that same year. It was named after Stephen F. Austin, the Texas Republic’s first secretary of state (known as The Father of Texas). The city continued to grow throughout the 19th century economically, politically, and culturally. It witnessed an economic boom in the 1870s when a railroad connected it to Houston and opened new horizons in trade, farming, and production. The Capitol Building was completed in 1888. The city’s business and cultural life continued to evolve throughout the 20th century.
Austin is located in Central Texas on the Colorado River and straddles the Balcones Fault, which gives it a variable elevation above sea level. The region presents the unique chemistry of a temperate, sub-tropical, and desert climate because of its specific terrain type. There are several artificial lakes in the city and a system of dams, which were built on the lower Colorado River to control floods, which often occur during thunderstorms.
Austin’s population is 950 715 people, the median age is 32.7 years old. Median household income is $63 717; median individual income is $34 576. About 18.3% of households have incomes ranging between $50 000 and $75 000; about 30.4% of households have six-figure incomes. Homeownership reaches 45.3%; average home value is $285 643, median rent size is $1524.
The racial makeup is similar to those observed in other cities. About 75% of the population are Whites, Hispanic Whites account for 34.5%, African Americans – for 7.6%, Asians – for 7%; Natives account for 0.5%, Pacific population – for 0.1%.
Today, Austin is a major industrial and educational center. The University of Texas at Austin runs a number of computer science programs and feeds the workforce to the city’s (and the nation’s) numerous high-tech companies. Austin’s biggest employers are the U.S. Federal Government, the State of Texas, NXP Semiconductors, the Texas State University, Amazon, Hewlett-Packard, Qualcomm, Whole Foods market, etc.
Austin boasts a vibrant cultural life: it is known as the Live Music Capital of the World, as it is home to the South by Southwest film/music/interactive festival, the Austin City Limits Music Festival, numerous nightclubs, and top-level singers, bands and orchestras.