Car Title Lenders, Opponents Ready for Fight in Va.

Examiner 
December 15, 2009
Flook, William C.

In Virginia, members of a joint House and Senate panel met on Dec. 14 and agreed to draft a proposal to regulate the car title loan industry by early January. One proposal discussed at the meeting would restrict annual interest rates on car title loans to 50 percent -- which W. Scott Johnson, a lawyer representing car title lenders, said would force title lenders to close up shop in the state. An analysis of other states that have tightened up regulation of car title lenders showed that all operators pulled out of states that adopted a rate ceiling of 36 percent or less, according to Joseph Face, Virginia's commissioner of financial institutions. Del. Kenneth Alexander (D-Norfolk) is pushing for consumer protections and financial literacy provisions to be included in the draft. State lawmakers succeeded last year in regulating payday lenders.

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