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November 26, 2005
Auto title pawn ripoffs
Our colleague Jean Ann Fox of the Consumer Federation of America has released a new report critical of the loathsome auto title pawn lending industry, which makes triple-digit APR small loans using your already-paid-for car as loan collateral and a copy of your car keys as security. Miss a payment, they'll just take your car: Kansas credit regulators told a legislative committee that one company, LoanMax, is applying for 44 repossessions each month or approximately 10 percent of total loan applications.
Posted by Ed Mierzwinski at November 26, 2005 02:01 PM
You quoted "Kansas credit regulators told a legislative committee that one company, LoanMax, is applying for 44 repossessions each month or approximately 10 percent of total loan applications." What you didn't say is that the committee then asked the regulator to verify his facts. When he investigated further, he found the actual amount of repos, 5-10 a month for the entire state, was far less than the 44 he "assumed" was accurate because of a "mathematical formula". I am a customer of this company and was glad to represent satisfied customers at this hearing. They provide a service that I can't get anywhere else because of past credit problems. Thank goodness for democracy, where ADULTS can choose to take out a loan with whomever they wish.
Posted by: Clark
at January 5, 2006 07:51 PM
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