It’s not all about us
May 3, 2010 | alternatives, federal legislation, industry | Comments (0)Other Main Street lenders are equally incensed about financial reform and working hard to fight it. From the story:
Robert Mims of Greenfield says he works two jobs to make the car payments on a 2005 Ford Taurus he bought four years ago for about $13,000. The payments – about $17,000 so far – already amount to more than what the car is worth, but he’s nowhere near paying off his car loan.
Mims, who has a bankruptcy on his credit record, says he left the dealership under the impression that the lender would lower his 24.9% interest rate if he made his payments on time for six months. He says he kept his end of the bargain, but the dealer did not. Four years later, he still hasn’t been able to negotiate a lower rate despite making his payments on time, and most of the payments he’s made continue to go toward interest, he said.”All they’re trying to do is rip off the American buyer,” he said. “At this moment, there’s probably someone getting suckered into a financing deal they can’t afford.”
Consumer advocates say Mims’ case exemplifies the need for stronger consumer protection regarding loans offered by auto dealers. The White House and many Senate Democrats agree; they’re now pushing for a new consumer financial protection agency that would regulate not just car dealers but other businesses that lend money to consumers.
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