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Article: Trapped by title loan?; Circuit Court to review case in which borrower faced 300% interest
- Article from:
- The Milwaukee Journal Sentinel (Milwaukee, WI)
- Article date:
- March 17, 2008
- Author:
CopyrightCopyright 2008 The Milwaukee Journal Sentinel. Provided by ProQuest LLC. (Hide copyright information)
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In December 2001, Kenneth Jones was desperate. A skilled
machinist, he had been laid off when Emco Metals was bought by
another company and his unemployment benefits had expired.
He needed cash to buy food and pay the rent.
Like many others in Wisconsin, Jones took out a loan using his
car as collateral. He thought he would be able to easily pay back
the $800.
Wisconsin Auto Title Loans, the lender, charged him 300%
interest, plus the cost of a $150 auto club membership that he
didn't need.
Jones said he thought he had whittled the loan down to $400, but
he was stunned to get a letter saying he owed $1,700 and his car, a
1992 Infiniti, was about to be repossessed.
"I knew the car was worth ...