Car Title Loans Banned In Iowa

The governor of Iowa has signed a bill banning car title loans. From the Iowa Attorney General:

Car-title loans have astronomical and unjustified interest rates, typically 264% and sometimes 360%. On top of that, the consumer puts his or her car at risk – the car-title loan company takes a lien on the car and actually takes keys to the car to make repossession easier.

But Car-title loans are about the only kind of loans where the lender gets to have it both ways: the loans have astronomically high interest rates, and they are secured by the consumer’s car or truck. Consumers get a bad deal on both counts, while the loan company gets a great deal. It’s unfair, it’s unjust – and now it’s a thing of the past in Iowa.

In other news, the governor of Iowa’s name is Chet Culver, which we think is sort of adorable. —MEGHANN MARCO

Miller Hails Car-Title Loan Bill [Iowa Attorney General Via U.S.PIRG Consumer Blog]
(Photo: Todd Ehlers)