Iowa Supreme Court rules in favor of car title loan business
Posted on Wednesday, July 29th, 2009 at 7:18 am
The Iowa Supreme Court submitted a ruling that favors car title loan businesses and will not give some car owners added protection from higher interest rates on their car title loans. The court ruled that the law, which was implemented July 1, 2007 and capped high interest rates on car title loans, does not apply to new cash advances made on old loans.
After the law was implemented in 2007, Anderson Financial Services, which runs Loan Max and Loan Smart, filed a lawsuit against Iowa Attorney General Tom Miller. Anderson argued that the law did not explicitly address cases in which new cash advances were made on existing loans.
In response, Miller claimed that the legislature intended to address the matter and ensure usury protection during its next session. Although the district court ruled in favor of the Attorney General intially, the
Supreme Court reversed the decision and sent the case back to district
court for a new ruling.
If you or your business is having problems with repaying car title loans, contact the Des Moines business attorneys of LaMarca Law Group, P.C., at (877) 327-2600.