Car-Title Loans To Be Capped, Finally

State Senator Jeff Angelo, Republican from Creston


From the Des Moines Register:

Gov. Chet Culver is expected to sign a bill clamping down on high-interest car-title loans.

The Senate on Monday voted 32-16 in favor of capping the interest rate of such loans at 21 percent annually. The House approved the legislation on an 84-12 vote last month.

"These are secured loans, so triple-digit rates are not warranted. The car is enough security," said Sen. Joe Bolkcom, an Iowa City Democrat who guided House File 5 through Senate debate.

Opponents of the bill said lawmakers were picking on one industry and trying to put it out of business.

"We will shut out many people that are in dire need of this financial help," said Sen. Jeff Angelo, a Creston Republican.

The legislation has been a top priority of Attorney General Tom Miller, who contends that car-title loan companies charge exorbitant interest rates.

This blog has been beating the drum about car-title loans for nearly two years, so I'm happy to see Democrats finally doing something good for poor people for a change.

You Republicans out there ought to suspicious about politicians carrying the "R" tag who claim to be fiscal conservatives, religious conservatives, or conservatives of any type who take money from lobbyists and support what is basically legalized loansharking. They need to be removed from office in the next election.

Concerning State Senator Jeff Angelo's quote in the story, I repeat what I've written before:

Think about how far down the hole you have to be to resort to getting a car-title loan. This means you have:

1. No cash
2. No savings
3. Nothing in the checking account
4. You own no stocks
5. You own no mutual funds
6. You have no college savings accounts for your kids to tap
7. You have nothing in your 401K in which to borrow from
8. You have no IRA in which can take money from for 60 days, penalty-free.
   
9. You have no mortgage equity to tap.
   
10. You have no credit cards available.
    
11. You don't have anything to sell in a garage sale or on Ebay.
    
12. You don't have anything to pawn.
    
13. You can't get an advance from your employer.
    
14. Your welfare is spent.
    
15. And you have no friends, parents, or children who will loan you money.

That's pretty low.