Payday Loan Ordinance

On September 27, 2016, the Bedford City Council approved Ordinance 16-3183, effective January 1, 2017. It addresses the registration and oversight of credit access businesses that provide payday loans and/or auto title loans to consumers.

As per the City ordinance, a credit access business cannot operate or conduct business without a certificate of registration issued by the City of Bedford. Registration is required for each geographic location operating or conducting business. In addition to the registration requirement, credit access businesses must follow lending guidelines that place restrictions on extension of consumer credit.


Highlights of this ordinance include:
  • Credit access businesses must register with the City annually.
  • Credit access businesses will maintain complete records and retain them for 3 years.
  • Cash advanced under consumer credit cannot exceed 20% of the consumer's gross monthly income.
  • Cash advanced under a motor vehicle title loan cannot exceed the lesser of 3% of the consumer's gross annual income or 70% of the current retail value of the vehicle.
  • Repayments may not be repayable in more than 4 installments and limits refinancing to no more than 3 times.
Ordinance Number 16-3183 (PDF) provides additional information to accomplish these changes.