If you are interested in two fascinating stories on payday and title lending, check out these two links. The payday article is entitled Payday Lenders Using Courts to Create Modern-Day Debtors’ Prisons in Missouri, and the title loan one is called Virginia becomes hub for risky car loans.
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3 responses to “Payday and Title Loan News Today”
From the article: “[J]udges often set the debtor’s release bond at the amount of the debt and turn the bond money over to the creditor.”
It sounds more like it is Missouri state judges that are using the courts to create modern-day debtors’ prisons.
Sounds like yet another Missouri problem. State government has made its judges into enforcers for collection companies. “Mr. Defendant, Judge Guido here is going to make you an offer you can’t refuse.”
These are stressful situations. In the case you mentioned in Virginia, the woman involved had to pawn her vehicle to get cash. She had no other assets left.
I think financial information will help to stop some of these situations from happening. Too many people don’t know how to evaluate interest rates properly so they get caught in this trap. Most credit unions will lend money against a person’s car. No one has to subject themself to this type of extortion.
Usually the age requirement for the vehicle is the same at a credit union and the interest charged is far less.