Car Title Loans Spark Ire in Virginia
Richmond Times-Dispatch (VA)
September 4, 2012
Due to a change in Virginia law last year, business is booming for the state's car title lenders. In 2010, Virginia lawmakers imposed new regulations on car title lenders but allowed them to operate in the state. Since the change, the state has become a magnet for potential borrowers from neighboring states, where laws capping interest rates have driven away lenders. Last year, the number of licensed car title lenders in the state almost doubled over 2010. But some are pushing back, including West Virginia's attorney general and a Roanoke County borrower. Attorney General Darrell McGraw Jr. is seeking to block Fast Auto Loans from writing new loans to West Virginians or seizing their cars after an investigation found that the title lender used aggressive collection methods. According to the Virginia State Corporation Commission, car title loans topped $125 million last year. Consumer advocates say that car title loans are more predatory than payday loans because borrowers risk losing their vehicles.
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