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Car title lender info remains under wraps, for now
CASEY: Car title lender info remains under wraps, for now
A media organization wanted to see information filled annually with the State Corporation Commission by car-title loan companies. The SCC said "no," and the Virginia Supreme Court dismissed an appeal.
By Dan Casey dan.casey@roanoke.com 981-3423 Jul 9, 2017
Recall back in 2011, when Mitt Romney was running for the Republican presidential nomination? He uttered a line that quickly became notorious: “Corporations are people, my friend!” ... Though many laughed at the notion, the Virginia Supreme Court has indirectly affirmed it. Last week, it dismissed an appeal by a media organization seeking certain data three Virginia car-title lending companies filed with the State Corporation Commission.
The court ruled against the Center for Public Integrity on some technical grounds (six years ago, it found the SCC is not even subject to the Virginia Freedom of Information Act). ... The companies themselves had argued the information the center sought could expose “personal financial information” that might harm their businesses.
These outfits advertise heavily and champion themselves as storefront lenders to little guys in a pinch who can’t get loans at stodgy banks. Need some quick cash for the rent? No sweat — and no credit check — title-loan companies are there for you. Just hand over your car title and you can score up to half your car’s value in minutes.
Of course, consumer advocates have a far different view. For years, they’ve reviled title loan companies as predatory lenders who take advantage of folks in desperate financial straits. That’s because the companies charge interest rates that, annualized, range up to 268 percent. (SunTrust Bank was charging less than 6 percent Friday for a 36-month, $5,000 used-car loan).
A media organization wanted to see information filled annually with the State Corporation Commission by car-title loan companies. The SCC said "no," and the Virginia Supreme Court dismissed an appeal.
By Dan Casey dan.casey@roanoke.com 981-3423 Jul 9, 2017
Recall back in 2011, when Mitt Romney was running for the Republican presidential nomination? He uttered a line that quickly became notorious: “Corporations are people, my friend!” ... Though many laughed at the notion, the Virginia Supreme Court has indirectly affirmed it. Last week, it dismissed an appeal by a media organization seeking certain data three Virginia car-title lending companies filed with the State Corporation Commission.
The court ruled against the Center for Public Integrity on some technical grounds (six years ago, it found the SCC is not even subject to the Virginia Freedom of Information Act). ... The companies themselves had argued the information the center sought could expose “personal financial information” that might harm their businesses.
These outfits advertise heavily and champion themselves as storefront lenders to little guys in a pinch who can’t get loans at stodgy banks. Need some quick cash for the rent? No sweat — and no credit check — title-loan companies are there for you. Just hand over your car title and you can score up to half your car’s value in minutes.
Of course, consumer advocates have a far different view. For years, they’ve reviled title loan companies as predatory lenders who take advantage of folks in desperate financial straits. That’s because the companies charge interest rates that, annualized, range up to 268 percent. (SunTrust Bank was charging less than 6 percent Friday for a 36-month, $5,000 used-car loan).