Sunflower Community Action fights money lending loophole

A loophole in auto title lending regulations is forcing some Topeka families to lose their vehicles, which is why the grassroots organization Sunflower Community Action is trying keep these families from falling even more into debt.

Sunflower Community Action fights money lending loophole

The loophole allows some lenders to charge whatever interest rate they want, and some are charging between 250 and 300%.

The group's lead program developer, Louis Goseland, says about this loop hole allows some auto title lenders to charge whatever interest rate they want.

He says a lot of the lenders are charging between 250 and 300 percent interest.

Goseland says Kansas is one of just five states that still have this loop hole, which is why his organization is trying to get a bill passed in the legislature to prevent families from being taken advantage of.

"What House Bill 2389 would do is cap the interest rate as well as put in other safeguards such as enabling a consumer to remove possessions out of the vehicle once it's been repossessed," Goseland said.

Jennifer Cale fell victim to an auto title loan and had her truck repossessed.

"I just don't want to have to see anybody else have to go through the trauma of having to worry about is my car going to be there when I wake up the next morning," Cale said.

Representative Dale Swenson out of Wichita is sponsoring the bill. The bill would cap title loan interest rates at 36 percent.

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