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Car title lending bill headed to House floor

By: Associated Press | TriCities.com
Published: March 05, 2010

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Legislation to rein in car title lenders is advancing in the House.

The House Commerce and Labor Committee voted 21-1 Thursday to send a bill to the House floor that would limit how much the companies could lend and charge borrowers.

Currently the lenders are unregulated, charge more than 300 percent interest and can repossess a borrower's vehicle if he falls behind on the payments.

The committee made some changes to the bill that would allow lenders to continue to charge those who were in default if they tried to hide the vehicle.

Lawmakers say the bill strikes a balance between protecting customers and not driving the lenders out of the state because they serve those who can't get traditional credit.

The bill already has passed the Senate.