In Very Very First FTC Problems Against Automobile Title Lenders, Businesses deceptively settle charges They Promoted the expense of Their Loans

In Very Very First FTC Problems Against Automobile Title Lenders, Businesses deceptively settle charges They Promoted the expense of Their Loans

Organizations did not reveal skills for “Zero Percent” Loan provides

The Federal Trade Commission has had action when it comes to time that is first two automobile name lenders, reaching settlements that may need them to cease their use of misleading marketing to promote title loans.

A car or truck name loan is usually a high price, short-term loan, guaranteed aided by 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 variety of loan is high-risk for customers 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 the loans we’re likely to do something to get rid of it.”

While advertised as short-term loans, name loans can become longer-term, high price installment loans with re payments due over many months. […]