Posted on 06/08/2015 5:50:27 PM PDT by dynachrome
Cash-strapped consumers are being shown a new place to find money: their driveways.
Short-term lenders, seeking a detour around newly toughened restrictions on payday and other small loans, are pushing Americans to borrow more money than they often need by using their debt-free autos as collateral.
So-called auto title loans — the motor vehicle version of a home equity loan — are growing rapidly in California and 24 other states where lax regulations have allowed them to flourish in recent years.
Their hefty principal and high interest rates are creating another avenue that traps unwary consumers in a cycle of debt. For about 1 out of 9 borrowers, the loan ends with their vehicles being repossessed.
(Excerpt) Read more at latimes.com ...
You can’t fix stupid.
“Unwary” you say? What, they didn’t read the contract?
Erroneous assumption noted... :)
People need to be educated how these loans, payday loans, credit cards etc can snare you in debt which is hard to get out of. I don’t know if more regulation is needed, but, an educated consumer, no matter how much financial difficulty they are facing, will know to avoid these places. How do we educate the unaware low information types to not get a Car title loan ; to not get a payday loan???
Exactly. Once these people get snared into these contracts, they’re going to beg the Left to bail them out.
or couldn’t..
One complainer sez “they” didn’t tell her what the interest rate was. Can’t read the contract, I guess.
What is the definition of “predatory lending”, anyway?
125% interest? 101%? 92.5%?, etc.
You sound as if the people borrowing the money don’t know it has to be paid back. They know. They’re most of the irresponsible sort that treats a loan as a gift. Like for example student - many think that they shouldn’t have to pay back their loans. irresponsible idiots - 0bama voters.
If Democrats are against it then it must be hurting the Mob’s loan-sharking business.
And what hurts the Mob hurts the Democrats.
I see an ad on TV which goes something like, “I got my title back with Titlemax”. It always makes me think it should be, “I lost my car to Titlemax”.
Didn’t the neon sign on the front reading “Abandon all money, ye who enter here” give the “unwary borrowers” a clue? Seriously, does anyone actually think this is a good idea when there is any alternative? Maybe the people who borrowed had no other sources, such that, as bad as this deal is, it’s better than what they had available without these places.
I really can’t see how these loans are any worse than government student loans. In both cases you have ignorant borrowers who gleefully take the loans, blow the cash on a new 60” flat screen plasma TV or a 5-6 yr. BA in Queer Gender studies, and then want someone to save them from themselves.
Aren't kali-fornia schools hotbeds of intellectual stimulation and learning?
is a sarcasm tag needed?
They came to our neck of the woods because of the frikkin’ illegals.
These loans are unfair and racist. Peoples gots a right to 60” flat screens and Grey Goose Vodka without getting the BMW repossessed.
Don’t sign contracts you can’t read or understand.
An employee of an aquaintance of mine inherited his grandmothers farmhouse before the mortgage meltdown and immediately borrowed money against it to buy 2 new vehicles.
His boss couldn’t make him understand that he just took out a 15 year loan on 2 autos.
They were from 1965 to 1974, when I was there.
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