Bay City Council says no to financial ordinance regulating short-term lending

Posted: 10/3/2018

While Bay City’s council took no action on regulating payday-lending businesses in the city, the decision to place the item on the agenda has drawn fire from one local businessman in a move he says is “retaliation” against him for his criticism of Bay City Mayor Mark Bricker.

“This is an ordinance that would put my family business out of business and it is being considered and I can’t even speak on it,” Evans said. “This is retaliation because I am the driver behind the legal action by Bob Head on Bricker over the charter. I am the former chairman of the original charter commission.”

Jerry Evans, owner and operator of Care Cash Express and a former Bay City councilman, believes that Bricker placed the item on the agenda in an attempt to get back at him for his work on changes done to the Bay City Charter.

The item, which was presented at Thursday’s council meeting by Bay City resident Bill Key, asked for the city to follow plans that are being used in Houston, San Antonio and Dallas that regulates payday-lending within its city limits.

“I would like to take the payday lending industry and bring it in a little closer to the bank and credit unions here in the city,” Key said. “I want to make it a little more affordable for people. I would like to see us adopt the Houston plan that has worked relatively well for Houston. These businesses are still able to operate but in a fair way now.”

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Key said the plan would allow the city to regulate these businesses that charge a high interest rate for small loans. Key said he was not sent to the meeting to ask for this ordinance by anyone or any business interest.

When members of the audience started to question Key, Bricker quickly stopped all interaction from the audience members.

“If we reel this in a little bit, I think it would be better for a whole lot of people,” Key said.

Council member Bill Cornman questioned what the city would have to assume if they passed this ordinance and council members all seemed united in not supporting the passing of this measure.

“We have an ordinance book that is big already,” Cornman said. “There are probably ordinances there that we are not enforcing right now and we want to add to them?”

“We can’t even keep up with the ordinances we have right now,” said Bay City council member Chrystal Folse.

Council member Jason Childers pointed out that the cities that Key gave examples of are all metropolitan cities with bigger staffs to deal with its ordinances.

“Those are all metro cities with tons of options,” Childers said. “A lot of banks in this town don’t do any small loans. If we run these businesses out of town, then these people are going to have to turn to loan sharks and that is inviting the devil into our community.”

Bricker said during the meeting he was in full support of the ordinance and wanted to see council take action on it.

“It just seems like if we pass this we are trying to protect people against themselves,” Cornman said. “I just can’t vote for something like that.”

For Evans, the presentation of this ordinance was Bricker trying to get back at him for his involvement in the changes on the city charter and the pending lawsuit against the city.

“Due process doesn’t exist with Mark Bricker,” Evans said when his request to be on council’s agenda was allegedly denied by the city. “I was made aware back in July that a gentleman by the name of Bill Key was going to present this ordinance to the city council. I fired off a letter to the city that would allow myself and the Texans for Financial Choice to make a presentation as to why this would harm the citizens of Bay City by forcing these businesses to close.”

On the next day, Evans was notified by the city that the agenda item was postponed until September. He said he informed the city that when this item was to be placed on the agenda, he wanted to be on it as well in opposition to it.

But when the city council agenda was posted this week, the agenda item was posted but Evans was not posted with it to speak in opposition to it. Evans was informed he needed to file another request for this meeting and he said he did so but was told that Bricker allegedly took him off the agenda.

Evans spoke during the public comments portion of the meeting.

Evans said if the ordinance was approved, “it would have me insult every customer that I have.”

“My wife and I started Care Cash because we care about people,” Evans said. “We help people keep baby food and diapers, we keep them in their apartments, we keep their utilities on. Consumers are not stupid. They know we are a cheaper alternative than paying overdraft fees to a bank or reconnect fees to the city if their water gets turned off.

“They can borrow $100 from Care Cash and pay back $115 so what is cheaper, $50 or $15,” Evans said. “That ordinance requires me to insult every single customer and ask them if they can read. If they can’t read, I am required to read every sentence of a 22-page contract to them in the language of their preference. If I don’t do that, I face a $500 fine per transaction.”

Evans said that cities that have done similar actions have forced these type of business out of town.

“There is not one citizen that has come down to the city hall that has requested this action,” Evans said. “This is just the mayor putting this out there to put me out of business.”

This ordinance was originally brought before Bay City council in October of 2014. Evans said it was the same week he announced his grand opening of his business in Bay City. Council tabled the action by a 5-0 vote at that time.

“(Bricker) is calling me abusive and predatory in that ordinance,” Evans said. “This does harm to my business and I have to deal with the negative impact this causes to my reputation. There is no way to comply with this ordinance. It is a business killer. He has posted on his Facebook page that I am a bottom feeder and that I take advantage of the poor and that is what I am dealing with. The mayor of Bay City is posting this and he has never set foot in my business or returns my phone call. I was his biggest supporter in 2010 but the mayor is a vindictive individual.”

Attempts to contact Bricker for comments on this matter were not returned.

I do not support Payday lending. They are bottom feeders who prey on the poor. Mark Bricker on his Facebook page.