Can governor control overcharging by CA's?

[Lecasbas]

Recently in the state of Iowa, governor Chet Culver restricted the high interest collected by a loan company to 21%. I can't remember the original rate, but it was much, much higher.

The place was called LoanMax. They took car titles for colateral and let the borrower keep the car. It was similar to the local jewelry loan /pawn with the rate of 15% until the end of the month. It was an okay deal for someone who needed fast cash and intended to pay back right away.

The problem was that most people didn't pay right away. On the second month they would pay 15% on the principle and the first 15%. Pretty soon people were losing their cars.

Rough calculations would put 15% monthly interest at around 200% per year.

Governor Culver stepped in and put a cap on the interest at 21% per year. LoanMax no longer does business in Iowa.

It is well know that JDB's buy debts for pennies (maybe less) on the dollar and then charge interest.

I wonder if I could succesfully petition the governor's or the attorney general's office and ask for intervention? They seem to have a sympathetic ear.

[qtptute]

Recently in the state of Iowa, governor Chet Culver restricted the high interest collected by a loan company to 21%. I can't remember the original rate, but it was much, much higher.

The place was called LoanMax. They took car titles for colateral and let the borrower keep the car. It was similar to the local jewelry loan /pawn with the rate of 15% until the end of the month. It was an okay deal for someone who needed fast cash and intended to pay back right away.

The problem was that most people didn't pay right away. On the second month they would pay 15% on the principle and the first 15%. Pretty soon people were losing their cars.

Rough calculations would put 15% monthly interest at around 200% per year.

Governor Culver stepped in and put a cap on the interest at 21% per year. LoanMax no longer does business in Iowa.

It is well know that JDB's buy debts for pennies (maybe less) on the dollar and then charge interest.

I wonder if I could succesfully petition the governor's or the attorney general's office and ask for intervention? They seem to have a sympathetic ear.

Loan Max is a payday lender. Governors and state legislators can cap the interest rate they charge.

Currently, if you get a payday loan for $100 for 2 weeks (standard) you pay back $150.00 But most people cannot pay back $150 and they roll it over for another 2 weeks (and continue to roll it every 2 weeks) paying the original $100 owed plus another $100.00 in fees and interest rates every week. Usually they get around 357% interest.