Senate Approves Restrictions on Car Title Loans

Tools

By Erin Leach

Story Created: Mar 20, 2007 at 4:47 AM CST

Story Updated: Mar 20, 2007 at 7:37 AM CST

AP - The Senate has approved new restrictions on car title loans. Its a move supporters say could protect borrowers from high interest rates and eventual car seizure.

The measure, which goes to Governor Culver, would limit annual
interest rates to 21 percent on car title loans, down from the current 300 percent.

The Senate approved the bill 32-16 yesterday, rejecting warnings from industry officials that the restrictions would force the industry from the state.

Critics, including Attorney General Tom Miller, have pushed the
Legislature to tighten the restrictions on car title loans.

Under a typical car title loan, the borrower hands over the
car's title and a set of keys as collateral.

Typically, there is no credit check to see if the borrower can repay the loans, and interest rates are high with payments due almost immediately. A missed payment means a car is seized and then sold.

Next Article Field of Dream Project Advances to Full Iowa Senate

Conversation Guidelines

Be Kind

Don't use abusive, offensive, threatening, racist, vulgar or sexually-oriented language.
Don't attack someone personally. Keep it civil and be responsible.

Share Knowledge

Be truthful. Share what you know and what you are passionate about.
What more do you want to learn? Keep it simple.

Stay focused

Promote lively and healthy debate. Stay on topic. Ask questions and give feedback on the story's topic.

Report Trouble

Help us maintain a quality comment section by reporting comments that are offensive. If you see a comment that is offensive, or you feel violates our guidelines, simply click on the "x" to the far right of the comment to report it.

read the full guidelines here »

Commenting will be disabled on stories dealing with the following subject matter: Violent crime, sexual abuse, Amber Alerts, Operation Quickfinds and suicides.