…Consumer advocates say the law protects car buyers by making the true cost of their auto loans more clear, and could pressure lenders to offer more favorable terms. The law does not apply to loans from banks, but does to those from car dealerships, where most consumers get financing for their vehicle purchases.
“We have long believed that lending to consumers in excess of 36 percent is predatory,” says Brent Adams, senior vice president of policy and communication at the Woodstock Institute, a policy and research organization that’s focused on consumer financial protection and is based in Illinois.