Michigan Bills Could Open Door To Auto Title Lenders
Auto title lenders, whose practices are aligned with those dealing in payday loans, furniture leases, and cheaply made wheel-and-tire rentals, may soon be able to profit off of Michigan consumers should a bill in the state senate be passed.
The Detroit News reports a bill sponsored by Senate Majority Leader Randy Richardville of Monroe, Mich. — with an identical bill led by Rep. John Walsh of Livonia in the state House — would add a loophole to a century-old pawnbroker law to allow those affected to charge a 20 percent monthly “usage fee” to consumers, instead of the 3 percent charged now.
The state’s pawnbrokers are among those opposed to the bill, stating that such an increase would only lead to more defaults, affecting consumers “in an adverse way,” according to American Jewelry and Loan vice president Seth Gold.
As for who is in favor, two opposing lobbyists have found Georgia-based Select Management Resources to be the primary backer of Michigan Senate Bill No. 1138/House Bill No. 5954.
Should the bill go through, auto title lenders could act as pawnbrokers in Michigan, going around a ban of their usual business model in so doing. Further, a loan of $1,000 would go from accumulating a manageable $360 in interest over 12 months, to an insane $2,760 over the same period.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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In my hood they have closed most of these places, and opened a bunch of restaurants, yea gentrification :) But seriously, my personal beef is that this ruins my ability to buy broken cheap cars and fix then sell them. Ex: Buy 2002 Sentra for $600 with blown head gasket, put in junkyard motor bought for $250, sell on CL for $1800, pay mortgage for the month... oh wait, this CAN''T be done when said Sentra has a blown HG and a $5000 lien. Nobody gets a car, I don't profit from understanding how to fix stuff, and the junkyard only gets scrap value when LoanMax auctions their collateral. Brilliant.
One of several biblical references to Usury: "And if you lend to those from whom you expect repayment, what credit is that to you? Even sinners lend to sinners, expecting to be repaid in full. But love your enemies, do good to them, and lend to them without expecting to get anything back. Then your reward will be great, and you will be children of the Most High, because he is kind to the ungrateful and wicked." —Luke 6:34-35 (Edit: Disclaimer -- Of course, like most Biblical interpretations, the exact these words can definitely be disputed, and even the core meaning can be changed to fit one's personal or sectarian needs.) Those who profess to be "Christians" should take note.
Michigan is one step closer to needing a bailout for the whole damned state. Just tell me know how much my share is, so I can start saving for it...
As long as there is a 'crat in the White House, the taxpayers of America will be drafted to bail out Michigan. Bailouts, handouts and nationalization have been done before. It will happen again. Precedence set. Don't worry. Be happy.