Car title loans snare victims at 300%...

Car title loans snare victims at 300% rates

There are 195 comments on the Chicago Tribune story from Jun 21, 2008, titled Car title loans snare victims at 300% rates. In it, Chicago Tribune reports that:

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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nick

Indianapolis, IN

#23 Jun 22, 2008
Another instance of IL proving they do not care about the truly needy. They dole out benefits to people who refuse to pay anything or work at middle working class taxpayers expense.. give seniors free rides, pad all the bills with pork and then let the truly needy suffer.

Maybe Obama should go into his millions of dollars and help these people out personally if he cares that much.

But he doesn't. he's a politician same as G Rod, Daley, Ryan, and Rezko. He only cares about himself.
nick

Indianapolis, IN

#24 Jun 22, 2008
Missing in action wrote:
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?
Yes, funny how she was so good the first term and then got silent. Either she was paid off or threatened by the machine. this is the same machine that set up the future Obama regime.
Maria

United States

#25 Jun 22, 2008
These title loan people sound like drug addicts with all of their excuses and justifications.They'd still make a lot of money with a 150% loan. Even a 100% loan. They're legalized loan sharks.
Maria

United States

#26 Jun 22, 2008
nick wrote:
Another instance of IL proving they do not care about the truly needy. They dole out benefits to people who refuse to pay anything or work at middle working class taxpayers expense.. give seniors free rides, pad all the bills with pork and then let the truly needy suffer.
Maybe Obama should go into his millions of dollars and help these people out personally if he cares that much.
But he doesn't. he's a politician same as G Rod, Daley, Ryan, and Rezko. He only cares about himself.
Now why in the world would Obama hand out his personal funds? I'm not an Obama supporter. But even so, your statement is kind of silly. And does anyone have proof that the gov't is receiving kick-backs?? All speculation.
Mike

United States

#28 Jun 22, 2008
If I understand this correctly, these people borrow money and spent that money and didn't plan appropriately to pay it back and are now complaining? Interest rates may be high, and if the state wants to shut these things down, so be it. But the simple fact is, the guy borrowed the money and he has to pay it back one way or another...and the "another" way is to lose the pledged collateral which is his car.
I for one am tired of all the deadbeats on government programs who then run up debts and complain. Go get a job, period. I've cleaned toilets, so can you. It is as if these people are still in "high school" and have never grown up, they keep on depending on everyone else. GROW UP!
Grandma Betty

Chicago, IL

#29 Jun 22, 2008
Hey, if the rate is too high, don't take the loan. If you're stupid enough to take the loan then that's your problem. The government's taxes on us are worse than these loan sharks.
Stan

Mesa, AZ

#32 Jun 22, 2008
Must be lots of fraud and payoffs that the state is not cracking down on the interest rates. These loans company lenders should be in prison for rates over 30%. People of Illinois must raise up and demand the State start protecting the people from load sharks. Make phone calls and send emails to them to ask that new laws be passed NOW. Auto Title Loans should be banned and closed down. People demand that they are closed. Picket the loans places. Sometimes when fraud and huge payoffs are made its difficult to get chance. Close these places down NOW
Don

Charleston, WV

#33 Jun 22, 2008
Blagojevich got $423,750. Mike Madigan got $112,350. Emil Jones jr. got $101,600. Jesse White got $87,500.
Pacman

Chicago, IL

#34 Jun 22, 2008
These people are just plain stupid. Yeah, the auto title companies are no better than loan sharks, but these people who agree to these loans are dumb. Can't stop people from being ignorant.
show me

United States

#35 Jun 22, 2008
might as well use a loan shark
Ken

Flora, IL

#36 Jun 22, 2008
John wrote:
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.
Well John, there are those that don't have the superior knowledge you seem to think you have.

There are those that live under fixed incomes that combined with health, injury, or age restrictions have no way of increasing their income in any appreciatable level but still need neccessitys such as a car. There are also those (and that includes many educated) that have problems with the long winded terms that so ofter is a combination of gobble gook and misleading wording, that full understanding is not possible.

No John, not everyone has your superior knowledge, your apparent lack of need for finacial help and, of course, your smug attitude. Some folks need help and no one should be allowed to take the type of advantage that many loan company's do.

You concern about paying more taxes is touching but I'm not sure what it has to do with this. There is no government bail out for folks in this type situation.
JoeQPublic

United States

#39 Jun 22, 2008
faye wrote:
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.
Were there about 3-4 examples here, maybe a few more depending on how you count? It's out of thousands of these loans. Why would you want to change public policy based on a few examples like this? Some people can't pay back regular bank loans. Would you favor banning those if a reporter could come up with a few stories of hardship?
JoeQPublic

United States

#40 Jun 22, 2008
The counterargument that is much less prominent in this article is that many people have terrible credit and couldn't get a loan at all, unless the rate was very high. Eliminating these high interest loans may therefore eliminate their access to loans. Getting rid of a few tales of hardship could create even more hardship. No examples involving these people who benefited from these loans are included in the article.
JimboG

Franklin Park, IL

#41 Jun 22, 2008
Harvey Wallbanger wrote:
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.
By adding government regulation you limit free enterprise. How about this.... Read the contract. If you don't understand it, don't sign it. The only reason title loan companies are in business is because of the demand for the loans. By making every life decision fool proof, society creates more fools.
My portfolio has tanked 60K in the last 12 months. Do I want Blago and the tax payers to bail me out? NO! My decision. My Risk. My problem.
This also means I don't want my tax dollars spent to bail out those that act irresponsibly and then cry that 'the big bad business man wants me to do what I said I would. Boo Hoo.........' Wake up people! Have some pride in yourselves.
Barney

Champaign, IL

#42 Jun 22, 2008
Protect the stupid wrote:
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.
Couldn't agree with you more. People constantly look to the government to save them. Read a bunch of these comments. "The government needs to do this. The government needs to do that." The government doesn't need to do anything because a select few individuals who made poor choices.

Are these loan jagoffs crooks? Oh hell yeah they are. So STAY AWAY from them. You don't need the government telling you that.
more crap

Warsaw, IN

#43 Jun 22, 2008
Why not investigate the default rate on loans that require no credit checks? I bet they find out that 25% of them default on their loans as opposed to the less than 1% that default on other loans. The interest is high because the default rate is high. Are there companies out there taking advantage, yes, but 300% is not out of line with a crazy default rate. Check out some of the online payday loans. Over 1000% interest, you borrow $300 and they take $90 every 2 weeks. The $90 only covers the interest and none of the principle making the loan last forever. That is crazy and should be reported on not this.
Joey

AOL

#44 Jun 22, 2008
Talk about the new era in the Mob business...legal and very profitable...just as bad as tow truck companies.
Dirty Sanchez

Arapahoe, NE

#45 Jun 22, 2008
Pacman wrote:
These people are just plain stupid. Yeah, the auto title companies are no better than loan sharks, but these people who agree to these loans are dumb. Can't stop people from being ignorant.
Laws are made to protect individuals...even if they are too stupid to see it. It almost sounds like you condone the preying on stupid people by those that are looking for an easy buck.
Barney

Champaign, IL

#46 Jun 22, 2008
Don wrote:
Blagojevich got $423,750. Mike Madigan got $112,350. Emil Jones jr. got $101,600. Jesse White got $87,500.
Sounds like Emil and Jesse need pay raises.
dot

Anderson, IN

#47 Jun 22, 2008
They are just robbers.... At one time they were called juce loans given out by the mob....now I see they are doing business completely legal... The state needs to get it together and stop their tatics....that type of interest rate is just plain crazy.....they feed on people in trouble like blood suckers and try to grab the last bit of assests someone has..I wonder if the elected officials have any money interest in this type of business...because they seem to being ignoring the problem........

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