DES MOINES, Iowa — The Iowa Senate and the House of Representatives both voted in favor of capping car title loans at 21% versus the current 264% to 300% that consumers pay.
The bill says a lender shall not contract for or receive a finance charge exceeding 21% per year on the unpaid balance of the amount financed for a loan of money secured by a certificate of title to a motor vehicle used for personal, family, or household purpose.
Iowa Rep. Bob Kressig (D-Cedar Falls), who is also a director at $1.1 billion Veridian Credit Union, said he threw his support behind a similar bill during Iowa's legislative session last year, but the Republican-controlled Congress did not bring the proposal up for debate. Kressig has said if the bill becomes law he hopes it will drive car title loan lenders out of Iowa.
Recommended For You
On March 20, the Senate voted 32-16 in favor of capping the interest rate and the House approved the legislation on an 84-12 vote in February. Gov. Chet Culver is expected to sign the bill.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
