Desperation, Legalized Shylocks & Usury

[searcher]

The high price of desperation: How a $3,000 repair ballooned into a $14,000 debt​

Craig Harris, USA TODAY - 3h ago

James Hollis, who lives on Social Security disability and $23 in monthly food stamps, was so afraid lenders would repossess his blue 2006 Ford Crown Victoria in July that he began parking it sideways in his carport to make it harder to pull out.

The converted former police cruiser was his only major asset, and he worried that after missing payments on $3,050 in loans that month, he was in his lenders' crosshairs.

Hollis, 57, had taken out the loans to fix the car's transmission But even after a friend helped him catch up on the installments, he struggled to pay for gas, food and housing in Tucson, Arizona, he said.

In dire straits, he decided to refinance one car title loan with another to lower his payment by $10 a month, but he said it added about $1,700 in interest.

Now, his limited income goes to the $427 monthly payment on a pair of car title loans that come with interest rates of nearly 155% and 202%. He wants to end the fears of having his car repossessed, which will cost him $10,741 in interest.

Read the rest here:

The high price of desperation: How a $3,000 repair ballooned into a $14,000 debt