Olde Hornet
Well-Known Member
http://www.usatoday.com/story/money/cars/2014/12/09/michigan-car-loans/20128753/
Michigan's pawnbrokers are unlikely allies with advocates for low-income families to block proposed legislation that would allow some high-cost car title loans in Michigan.
A state Senate bill, sponsored by outgoing Senate Majority Leader Randy Richardville, a Republican from Monroe, Mich., would allow consumers to borrow money against their car titles, while keeping the car, and be charged fees of 20% a month — or effectively an annual percentage rate of more than 200%.
Not surprisingly, many consumer groups charge that the car title loans are predatory and exploit people who already are having trouble paying their bills. Borrowers may have bad credit and find the ads for "no credit check" appealing.
Michigan's pawnbrokers are unlikely allies with advocates for low-income families to block proposed legislation that would allow some high-cost car title loans in Michigan.
A state Senate bill, sponsored by outgoing Senate Majority Leader Randy Richardville, a Republican from Monroe, Mich., would allow consumers to borrow money against their car titles, while keeping the car, and be charged fees of 20% a month — or effectively an annual percentage rate of more than 200%.
Not surprisingly, many consumer groups charge that the car title loans are predatory and exploit people who already are having trouble paying their bills. Borrowers may have bad credit and find the ads for "no credit check" appealing.