Ruling says law doesn't apply to previous loans - KWWL - Eastern Iowa Breaking News, Weather, Closings

Ruling says law doesn't apply to previous loans

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DES MOINES (KWWL) -- The Iowa Supreme Court has ruled a law limiting high interest rates on car title loans cannot be applied to new cash advances made on old loans.

The lawsuit was filed by Anderson Financial Services, which does business as Loan Max and Loan Smart, against Iowa Attorney General Tom Miller.

The law took effect July 1st 2007, and capped annual interest rates on car title loans at 21 percent.

In Friday's ruling, the Supreme Court says the legislature didn't make the law retroactive.

That means the limits can't apply to loans made before July 1st, 2007 or even if new advances are taken on those loans.

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