In Very Very First FTC Matters Against Automobile Title Lenders

In Very Very First FTC Matters Against Automobile Title Lenders

Organizations neglected to reveal skills for “Zero Percent” Loan provides

The Federal Trade Commission has brought action when it comes to first-time against two vehicle name loan providers, reaching settlements which will need them to prevent their usage of deceptive marketing to advertise name loans.

A vehicle name loan is normally a high price, short-term loan, guaranteed using the consumer’s vehicle title. The FTC charged that the companies advertised, both online and in print, zero percent interest rates for a 30-day car title loan without disclosing important loan conditions or the increased finance charge imposed after the introductory period ended in administrative complaints issued against two title lenders, First American Title Lending of Georgia, LLC, and Finance Select, Inc.

“This form of loan is dangerous for consumers because they could lose their car – an asset many of them can’t live without,” said Jessica Rich, director, FTC’s Bureau of Consumer Protection if they fail to pay. “Without appropriate disclosures, customers can’t know very well what they’re getting, then when we come across misleading advertising of those loans we’re planning to act to end it.”

While advertised as short-term loans, name loans can be longer-term, high expense installment loans with re re payments due over almost a year.

Read moreIn Very Very First FTC Matters Against Automobile Title Lenders