Austin Municipal Court Judge Ferdinand Clervi struck straight down a area of Austin’s payday ordinance that is lending March, governing that the ordinance’s restrictions on regularity and quantity of payments are preempted by state legislation.
That ruling impacted two split situations where the town charged the amount of money shop, which does company underneath the name fast money, and ACSO of Texas, working as Advance America, with breaking exactly the same parts of the ordinance.
If Clervi’s ruling is fundamentally upheld, it’ll imply that Austin, along with other towns which have comparable ordinances in Texas, may no further manage to protect consumers within the method in which City Council envisioned whenever it enacted the ordinance.
On Thursday, the town filed appeals both in situations, saying the judge had been mistaken when he ruled that state legislation overrules the limits that are ordinance’s. Appeals from Municipal Court rulings are incredibly unusual and tend to be determined with a Travis County court at legislation judge.
Paul Lewis, whom manages this system that oversees payday loan providers’ conformity with all the town ordinance, told the Austin track this is actually the time that is first is this kind of ruling and appeal. Read More