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SACRAMENTO BEE: Bill cracks down on 'buy here, pay here' auto dealers
August 31, 2012
The California Senate gave final approval Thursday to legislation that would regulate "buy here, pay here" auto dealers, responding to reports that they exploit low-income consumers with high interest rates and harsh repossession practices.
Sen. Ted Lieu, D-Torrance, introduced the bill, Senate Bill 956, after the Los Angeles Times published a multi-part series on auto dealers who sell cars and finance the sales themselves.
Among other things, the legislation would limit interest rates on such sales, which now sometimes exceed 30 percent a year, and regulate how dealers can repossess cars for late payments. Some dealers allegedly sell and resell the same cars multiple times after repossessing them.
The final Senate vote to send the bill to Gov. Jerry Brown was 23-14.