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Refunds to Be Paid to Loan Agencies

July 30, 2007

Davenport, Iowa — The city of Davenport and Scott County will refund more than $453,000 to the Ford Motor Credit Company, an affiliate of one of Detroit's Big Three automakers, the Associated Press reported.

The refund comes after a Polk County District Court ruling that a state law that taxes only out-of-state loan agencies is unconstitutional. The Iowa attorney general's office decided not to appeal the ruling.

Assistant Scott County Attorney Ted Priester says the law that was found unconstitutional showed favoritism to Iowa-based loan agencies and discriminated against out-of-state companies. He says that broke the rules of interstate commerce.

The Polk County ruling was actually in favor of the General Motors Acceptance Corporation, or GMAC, also an affiliate of the Big Three automakers.

Records show the city of West Des Moines and Polk County will refund $467,000 in related actions.

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