Payday loan foes aim at car-title loans

[UpInArms]

Source: Associated Press

By structuring their loans as open-end credit, the lenders can charge triple-digit interest and whatever terms they wish as long as they don't charge anything for 25 days. In most states, the entire loan is due in one month, but can be rolled over and new fees charged.

This year, legislation was introduced in at least eight states, from Florida to South Dakota. Last year, 16 states took on car title lenders, and six of those — Iowa, Mississippi, Nevada, Montana, Oregon and Utah — passed some sort of regulations.

Some have taken on both payday and car title lenders at once. New Hampshire legislators are close to an agreement on a 36 percent interest rate cap on payday and car title loans, and the governor there has said he would support it. Congress also banned payday lenders, car title lenders and tax refund anticipation loan companies from charging members of the military or their families more than 36 percent interest.

<snip>

States that have regulated payday lenders have seen a proliferation of the storefront cash advance shops. Last year, 24,000 payday lenders made about $40 billion in loans nationwide, according to The Center for Responsible Lending.

Read more: http://news.yahoo.com/s/ap/20080302/ap_on_bi_ge/driven_into_debt

[angstlessk]

1. got a call from one of those shysters..called 'freedom to borrow' or some such crap

I asked you are a payday lender correct and they said yeah, why don't you support it..I said HELL NO and hung up! they are agressive if nothing else!

[Bluzmann57]

2. I work with a guy who fell into the title loan trap

And he was one tired guy because he was working 60-70 hours a week to pay it off. His wife was ill and couldn't work and they have two kids, so he had to do it (work a lot). But he has learned his lesson and won't do it again. Plus his wife is back to work again.
This type of thing is nothing but legalized loan sharking and needs to be curbed.

[sandnsea]

3. Legal loan sharking

You used to be able to get a short term loan from the credit union or S&L. But their customers are now an inconvenience to them. I bet banks own most of these title loan outfits to begin with.

[Viva_La_Revolution]

4. 3 of these storefronts have closed on my end of town since they passed the new laws.

I love it, puts a smile on my face every time I drive past the new 'for lease' posters in the windows. :)