Dec. 6, 2005

Representative Kevin McCarthy:
“We Must Protect the Needy
from the Greedy”

             Des Moines, Iowa – Representative Kevin McCarthy (D- Des Moines) said today that at this holiday season especially we must “protect the needy from the greedy.” 

            McCarthy, ranking member of the Iowa House Public Safety Committee, was referring to auto title loans that charge as high an interest rate as they want. 

            “These companies advertise as if they are friends to those who have credit problems and need money during the holiday season and throughout the year,” McCarthy noted.  “They are not your friends.  They are businesses that will suck you dry and leave you in worse financial shape than you started with.”

            McCarthy joined Attorney General Tom Miller, Senator Joe Bolkcom and others at a news conference today calling for passage of legislation to reform the car title loan industry.  The Iowa Senate passed a bill last year that would have limited the maximum finance charge allowed for consumer loans secured by a car title to no more than 21 percent per year on the unpaid balance of the loan, the same limit which applies to other direct lenders.  The bill was never brought up for consideration in the House.

            “The Senate bill passed unanimously last session.  I believe that the votes are there in the Iowa House to also pass this legislation if leadership will allow the bill to be debate,” McCarthy concluded. 

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