Many states are cracking down on predatory lending practices, but little has been done to keep in check car-title loan operations.

Payday lenders receive the bulk of the attention regarding an industry that has been disastrous for low-income families and workers. But many states, including Illinois and Wisconsin, still have no laws regulating car title lenders, which can be even more devastating to the poor.

Now, cash-strapped consumers may go to a car-title lender, turn in a vehicle's title and a copy of the keys in exchange for a loan of up to half of the car's value. The borrower must then repay the loan within a month -- plus interest of 200 to 300 percent -- or lose the car. Some online lenders charge interest as high as 650 percent. Lenders make no effort to assess borrowers' ability to pay, so default rates are high.

For an individual on the financial ropes, the loss of his or her car often means the loss of employment. No car means no job. For a low-income family, the vehicle is probably the most important asset, said Leslie Parrish, senior researcher for the Center for Responsible Lending. Losing that single asset could create a domino effect, making it difficult to work, to get kids to school and to receive medical care.

Iowa was among a half-dozen states that took on car title lenders last year. Iowa's law now limits interest rates to 21 percent, the same as consumer loans. Illinois and Wisconsin should consider the same. About half of all states have banned the practice of car-title lending. For the states where car-title lenders are operating, regulation is warranted. It is a matter of consumer protection for the working poor.

With so many unregulated states, it is impossible to track loan data on the industry nationwide. But the car-title lending industry has exploded along with other alternative financial services promising quick cash, regardless of credit history.

Clearly, there is an entire population that needs access to credit and is not being served by conventional lending institutions. Banning car-title lenders altogether could stop the exploitation of the working poor, but it fails to address the real problem -- lack of fair credit. States can allow the industry to continue to function but stem the exploitation of borrowers by capping interest rates on lenders.

Editorials reflect the consensus of the Telegraph Herald Editorial Board: Jim Normandin (publisher), Brian Cooper, Ken Brown, Monty Gilles and Amy Gilligan.