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Date published: 1/6/2009
Phil Kent, communications director for Fast Auto Loans, made several pertinent and interesting points in his Dec. 18 op-ed, especially noting the value of car-pawn loans in these credit-strapped times ["Consumer credit that is insane!"].
He also observes that the car-title pawn business is "an honest transaction between two willing parties." Whoa! It's really more like taking candy from a child, or standing at the lifeboats on a sinking ship, keeping out everyone but those willing to sign on for a high risk of future financial ruin. The child in this case is that part of us that comes to the foreground when we're desperate, that yields to wishful thinking, and that doesn't think too clearly. Otherwise, we'd see that the full balloon payment that is due within a few months (or less) probably wouldn't be payable, and that we'd be trapped in a very expensive financial sinkhole. According to the Center for Responsible Lending, "Although high-priced title loans are illegal in most states, the title lending industry has grown tremendously in recent years in states that have failed to take adequate steps to protect borrowers. "Title lenders have made generous campaign contributions, and industry-friendly laws have passed in some states at breakneck speed." Yes, there's a place for car-title loans, but not at interest rates annualized at more than 300 percent, and where the car at risk of repossession is the family's access to employment. I hate to say it, but during this next legislative session in Virginia, any legislator who resists closing down this loophole on predatory lending will make me suspect that some personal advantage rather than community benefit is motivating him. Karen Kallay Fredericksburg
These businesses are a fine example of what our society has come to in general and an extension of the pawn shop industry. They prey on people in desparate situations and more often contribute rather than assist those in need. While it's true that no one is being forced to do business with any them, their business practices should be more closely regulated. No one should be allowed to take advantage of people in desparation this way.
at 20%, just like it USED to be until the wise guys won.
do have the right to be stupid.
to borrowers as desperate. If you're house were burning, and the fireman expected you to sign a contract agreeing to pay some sum of money, would you sign it? Would you worry, in your time of need, how much you were agreeing to pay?
Title lenders prey on the weak and desperate. Sure, the borrowers are adults, but they need help, not the loan sharks who make their money off the pain and fear of their customers.
refers to borrowers as children. This is insulting. They are adults who have no doubt signed contracts to purchase XY and Z. If you feel like lending folks money at lower interest rates without collateral, you are welcomed to (personal loans). The continuous infantilization of the adults is ruining our society. I'm so tired of the safety nets provided to those who continue to act like children on the backs of those who have chosen to be adults and consider each and financial opportunity carefully.
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