Car title loans snare victims at 300% rates

Full story: Chicago Tribune

Rosa Mobley never imagined her debts would swell so large. There were times when the 66-year-old widow, who struggles by on Social Security and her pension as a school crossing guard in Chicago, fell behind on ...
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1 - 20 of 195 Comments Last updated Dec 30, 2013
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brenda carstens

Carlinville, IL

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#1
Jun 21, 2008
 

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these title cash loans should not even be able to use a persons social security as income for a loan, yes joe ledford is my son. my son has been thru mental turmoil the last 4 years. mr. johnson office help knew he was in section 8 housing, and on ssd. the politicians need to set new rules about using ss as basis for such a loan!! joe ledfords mom
Rufus McDonald

Franklin Park, IL

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#2
Jun 22, 2008
 
Blago (or the IL legislature for that matter) helping citizens fight crooks?

Bwahahahahahahaaaaaaaaaaa !!!!!

YOU_IGNORANT_VOTERS,_YOU !!!!!!

I have a bridge i want to sell you!
Missing in action

Superior, WI

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#3
Jun 22, 2008
 
Where is Lisa Madigan? Why has she been absent on this issue for so many years? Some consumer advocate. How much money is she and her dad taking from these predators?
John

Chicago, IL

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#4
Jun 22, 2008
 
If they would have read the details of their loans, they would have and should have known better. The true "victims" will be the rest of us taxpayers that have to bail out another round of fools.
Harvey Wallbanger

Lombard, IL

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#5
Jun 22, 2008
 
With apparently no regulation of this type of auto loan business, those who support the idea of getting rid of government regulation of business should be proud of the results.
Protect the stupid

Elk Grove Village, IL

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#6
Jun 22, 2008
 
I am so tired of everyone saying 'feel sorry for me, save me from myself, I am an idiot'. Stop protecting people who are stupid. Get a brain, read what you are signing. If you do not understand it then do not sign it until you do. This is just like the mortgage foreclosures. Bunch of stupid people who want the government to us my tax dollars to bail them out. If someone gets into trouble they should have to live with it. It was their decision.
faye

Atlanta, GA

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#7
Jun 22, 2008
 
There is something terribly wrong with a government that allows such behavior to continue. Be that government the state or federal branch. It is imperative that government do what it is supposed to do and protect the public. Yes, there is the argument that these people knew what they were doing. But not once did I hear or red the borrowers were doing so in order to obtain an upscale or unneeded item. Instead, it appears the borrowers were simply trying to meet the basic necessities of life. We must become more concerned about the predatory behavior which has began to engulf us.
happytwo

United States

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#8
Jun 22, 2008
 
Why not, we use the tax dollars to bail out corporations, what's the difference?
Jack

United States

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#9
Jun 22, 2008
 

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How embarrasing for a 30 yr old to have your mommy sticking up for you in a public forum
Marsup

United States

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#10
Jun 22, 2008
 

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OK, so the person making the loan knew he was on SSD and section 8. Didn't your son also inform himself of the terms of the loan? Your son made his bed and now he has to sleep in it.

I didn't know that section 8 covered houses with garages. It sounds like his problems are mental not physical so he should be capable of getting where he needs to go on his feet rather than by car if he can't afford it. He can move in with you if he can't afford to live on his own.

It may be wrong to issue 300 percent loans, but I believe it is equally wrong to take them out. It's a contract and if both parties agree to it that is your tough luck, or stupidity.
Ian Michael Gumby

Chicago, IL

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#11
Jun 22, 2008
 
A lot of you missed the point.

The fact that this is an unregulated market, desperate people look to these places as a temporary fix.

300% a year interest rate means that on a $1,000.00 loan, you're paying $3000 in interest over the course of the year. Which means you're paying back $2500.00 on a $1,000 short term loan.

When you consider that credit card companies tend to be maxed to 36%, it should put things in to perspective.

Their excuse "If we don't 'help' them, no one else would."

So maybe it would be better off if they lost the car, or were forced to sell the car to pay off the loan. This way, they might get some cash back and get to start off with a fresh future.
Wary Larry

United States

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#12
Jun 22, 2008
 
brenda carstens wrote:
these title cash loans should not even be able to use a persons social security as income for a loan, yes joe ledford is my son. my son has been thru mental turmoil the last 4 years. mr. johnson office help knew he was in section 8 housing, and on ssd. the politicians need to set new rules about using ss as basis for such a loan!! joe ledfords mom

Yep. Bet Mr. Johnson had this guy in a headlock and wouldn"t let go until he signed. Sounds like little Joey was raised to believe that it's always somebody elses fault. Some mother.
One Plus One

Lafayette, IN

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#13
Jun 22, 2008
 
How does someone pay $4000 in 28 months for a thousand dollar loan? That would have been a payment of about $140 a month, and the amount loaned would have been satisfied in 8 months. All the rest was loan-sharking. Sounds like someone pawned their calculator along with their car. The auto title companies not only take advantage of those that can least afford the excessive payments, but those who are mathematically challenged. So now the states must legislate to protect the citizens that cannot add.
u gotta be kidding

Fort Wayne, IN

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#15
Jun 22, 2008
 
when one gets to the point they are getting a loan of this nature, they have to be pretty desperate. it seems to me that these same individuals are also probably at the point they qualify for public aid of some kind. so, why don't we turn these lenders into public aid information offices as well as cutting the interest rate. that would encourage them to get out of the business.
lisa

Chicago, IL

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#17
Jun 22, 2008
 
those people are LOAN SHARKS you borrow $50 pay back $150
Pystov

Summerfield, FL

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#18
Jun 22, 2008
 
Loan sharks are the worse type of preditor, they feed on the uneducated, poor, mathematicaly chalanged, unknowledgeable, needy folks. These sharks should rot in hell ! The politicians allowing these sharks to do this feed should & will rot in hell too.
ChiTownShad

Chicago, IL

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#19
Jun 22, 2008
 
Finally, front page awareness to another credit problem that it weakening our economy and hurting the working poor. Call your state representative and tell them you want reform on this and other loan sharking practices within the Great State.
Pelon

Chicago, IL

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#20
Jun 22, 2008
 
Complete and total RIPOFFS!

They should be banned outright!

They provide no service, it is a form of legalized robbery is what they are doing!

Loan sharks come to mind!
Don

Charleston, WV

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#21
Jun 22, 2008
 
Isnt there a criminal usary law in Il. If it doesnt apply to these loans the law should be amended to include them. Wonder how much of the loan money finds its way into the lawmakers funds.
The average bear

United States

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#22
Jun 22, 2008
 

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The reason Illinois politicians have done absolutely nothing to stop this is because they are all receiving "contributions" from these companies. IL politicians don't give a damn about IL residents. All IL politics are is a get rich quick scheme. Don't expect any favors from Blago, Daley or any of the others.

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