FOR IMMEDIATE RELEASE: June 25, 2008
Alexandria City Council Approves Voluntary Agreement
With Payday and Car Title Lenders
Lenders To Provide $20,000 To Fund Consumer Financial Education Programs
On Tuesday, June 24, the Alexandria City Council approved a voluntary agreement with the payday and car title lending industry, who agreed to provide $20,000 to fund consumer financial education programs in the City, including the City’s Dollarwise Program. Because of this voluntary agreement, the City Council voted to defer action on an ordinance that would have increased the business license tax rate to $0.58 per $100 of gross receipts on all payday and car title lenders, the maximum rate the City is allowed to tax for this subcategory of financial lenders.
“From the outset, our goal has been to protect our most financially vulnerable residents,” stated Mayor William D. Euille. “A consumer financial education program will provide information about the high costs associated with payday loans and provide alternatives that can help residents make financially sound decisions.”