RESOLUTION NO. RS2015-1398

A resolution supporting HB317/SB496 prohibiting short-term lenders from charging an interest rate for any short-term lending transaction that exceeds 28 percent per year.

WHEREAS, studies have shown that interest rates, fees, and lending practices used by short-term lending establishments such as pawnshops, payday loan services, cash advance establishments, and title loan businesses can have a significant negative effect on a person’s ability to achieve financial stability; and

WHEREAS, according to recent media reports, there are now more payday lenders in the United States than McDonald’s or Starbucks; and

WHEREAS, the average APR for short-term loans at these establishments is in excess of 300%; and

WHEREAS, HB317 (Jernigan) and SB496 (Kyle), which are currently pending in the Tennessee General Assembly, would prohibit short-term lenders from charging an interest rate in excess of 28 percent per year; and

WHEREAS, it is in the best interest of the citizens of Nashville that HB317/SB496 be approved.

NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. The Metropolitan County Council hereby goes on record as supporting HB317/SB496 to prohibit short-term lenders from charging an interest rate for any short-term lending transaction that exceeds 28 percent per year.

Section 2. The Metropolitan Clerk is directed to send a copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly.

Section 3. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Megan Barry, Fabian Bedne, Bill Pridemore, Josh Stites, Buddy Baker, Burkley Allen, Ronnie Steine, Chris Harmon, Brady Banks, Anthony Davis, Doug Pardue, Davette Blalock, Peter Westerholm, Jacobia Dowell, Josh Stites, Jerry Maynard, Jason Potts, Sandra Moore, Karen Bennett, Karen Johnson, Larry Hagar, Jason Holleman, Bruce Stanley, Sheri Weiner, Lonnell Matthews, Scott Davis, Phil Claiborne