Michigan Senate Majority Leader Randy Richardville of Monroe, the senator behind the bill that would allow auto title loan companies to do an end-run around the state's title loan ban by posing as pawnbrokers, proclaimed the 276-percent interest loans the title companies would provide consumers weren't predatory.
The Detroit News reports the outgoing senator said as much before reporters last week during the state legislature's lame-duck session, adding that he isn't trying to "ram the bill" through said session, despite introducing it the day after Election Day, and making sure it could bypass committee on the way to the floor for vote.
Richardville also said bank and credit union representatives were meeting with those in the pawn industry to reach a compromise on the bill, which was news to one of the bill's opponents, Michigan Pawnbrokers Association president Mark Aubrey:
The Michigan Pawnbrokers Association has not been contacted by any agency for compromise. There is no middle ground here. Title lending has no place in the Pawnbroker Act and no place in the pockets of Michigan's consumers.
Should the bill — No. 1138 in the Senate, No. 5954 in the House — pass, a loan of $1,000 that adds $360 of interest in 12 months — based on a cap of 3 percent per month — would pull in $2,760 within the same period at an interest rate of 276 percent annually, thanks to a 20 percent so-called "usage fee" charged monthly.
The post Richardville: Michigan Doesn't Allow 'Predatory Lending' appeared first on The Truth About Cars.
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