Legislation Considered on Iowa Payday Loans, Car Title Loans
Iowa Democratic leaders are joining with Attorney General Tom Miller in pledging to pass new restrictions on car title loans, while also considering such acts in the face of increase payday loan use.
Democrats, who gained the majority in the Legislature in last month’s election, predict a bill to restrict the industry will be introduced during the first month of the session, which starts on January 8.
Consumers who get car title loans put up the title to their car as collateral. They can face annual interest rates as high as 360 percent. Missing a payment can mean the loss of a car. Those that miss a cash advance payment simply face increase fees the next time around.
Senator Joe Bolkcom, an Iowa City Democrat, says he’ll push the restrictions as part of a larger package dealing with predatory lending practices, such as payday advance loans and other dangers to consumers.