Comments on: Lawmakers target car title loans

By: David Johnson

David Johnson — Thu, 05 Nov 2009 13:31:35 +0000

The industry is no better than loan sharking, the terms of these loans are criminal, and prey on the desparate.
Someone without money being able to pay back a loan at 287% interest, is impossible, the practice of lending money to people who cant afford to pay it back and have nothing already is criminal and predatory.

By: David Johnson

David Johnson — Thu, 05 Nov 2009 13:28:03 +0000

The car title loan industry can hardly be called legal, would you encourage a financially strapped person with no credit to sign up for a loan @ 287% APR, $11/day interest. With no chance of ever being able to pay it back.

Loan Sharks would have better terms than that, this is a legal industry that is preying on the desperate. It does not help them if they just end up losing their vehicle.

By: MoreNews@11

MoreNews@11 — Wed, 08 Jul 2009 17:05:09 +0000

First the payday lenders, then the title lenders, then the pawn brokers, and soon the unbanked will have no legal alternatives. Then they will borrow from ACTUAL loan sharks. Do you think people will just stop needing money if you legislate these businesses out of the state? I totally agree with Medved. Running these lender off sends many people’s legal alternatives away with them. Helping the unbanked requires providing access to credit, this is doing the opposite.

By: Tom Lawrence

Tom Lawrence — Tue, 30 Jun 2009 15:44:21 +0000

Very interesting article Al. Brevity is your hallmark. Perhaps a follow up would be in order. You could address how this legislation will help those who no longer have access to credit.

I am sure they anticipated what will happen when 3.1 million Virginians are cut off from credit. Where do these people go for credit? How will the lack of it affect their lives, impact their communities, alter their economic behavior?

Who is next to feel the wrath of the State after the Car Title lenders? Perphaps the Credit Card Companies like Capital One will have their fees and interest rates capped. If so, who will supply this credit need if the cap is below the level of profitability?

Seems like a new direction is being taken with respect to public policy. It is a story yet to be told.

By: John Medved

John Medved — Tue, 30 Jun 2009 14:15:35 +0000

so are we just going to push the poor to a loanshark. I mean high intrest rates and losing your car are bad but, isn’t using an illegal loan shark. These people need money. They will find it somewhere and that somewhere might be with a shilock. Why must we regulate the behavior of consenting adults. The Va poverty law center needs to take into account a repo is far better than “”biggie” paying a visit and breaking a few bones to keep the loan payments coming in.These people took out these loans, nobody forced them. It seems to me that we are just taking away all choices for the desparate.