|Gardere Attorney Steve Camp quoted in Austin American-Statesman article |
Credit lenders sue Austin, claim regulations violate state law
|June 16, 2012 11:55 pm|
The City of Austin's new regulations on credit lending have come under fire again, with two companies individually filing lawsuits against the city last week.
The City Council passed an ordinance in August that required so-called payday lenders to register with the city, limited how much cash in advance payday lenders could offer to borrowers, restricted the number of times a borrower can refinance his or her loan and prohibited where such lenders can operate.
Claiming the restrictions violate state law, TitleMax, a Delaware-based car title loan provider, filed suit Tuesday, and Rubicon Equity Partners LLC, a foreign limited liability company, filed suit Thursday.
"Rubicon believes that it has constitutional and statutory rights relating to the ability of the city to regulate loans that are offered by a credit access business, and we fully intend to pursue this case," said Steven Camp, a partner with Gardere Wynne Sewell LLP, the firm representing Rubicon.
Attorneys with TitleMax did not return multiple requests for comment Thursday and Friday.
© 2012 Cox Media Group, Inc.
Send this page to a friend