Title lenders in sights of Virginia do-gooders
October 7, 2008 | VAs Against Payday Loans, Virginia, alternatives, industry, industry critics, media coverage | Comments (0)Not happy with nanny-state restrictions on payday loans, activists in Virginia are going after title lenders. From the story:
Because car title lenders are unregulated, no one knows exactly how many exist in Virginia. Religious and consumer protection groups have identified 113 through Google and online Yellow Pages searches.
Like payday lenders, title lenders offer small loans with high interest rates of 25 to 30 percent per month. Borrowers turn over the title to their vehicle and a set of keys as collateral on the loan. If they pay only the minimum amount each month, the interest accrued can reach double the original amount of the loan within six to eight months. If borrowers fall behind on payments, they can lose their car or truck.
People need credit more than ever. Theses activists are making things worse for working people, not better.
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