Don't Get Taken By Car-Loan Scams

MarketWatch
August 19, 2010
Waters, Jennifer

In addition to shady mortgage-modification companies, consumers must now be on the lookout for auto-loan scams. Edward Fox, who began making payments to a company that promised to lower his monthly car payment from $700 to $400, had to resort to a complaint with the Better Business Bureau before the scam could be resolved. After making two payments, the firm became nearly impossible to reach. Thanks to efforts by the BBB, Fox got his money back with an apology but he says he will never recover his sense of trust. "Some companies may make it look like they are tossing out a life preserver, but they end up pulling many borrowers deeper underwater," according to Steve Bernas, chief executive of the BBB serving Chicago and northern Illinois. Consumers need to be cautious and selective when seeking out help. Tips for consumers struggling with auto payments include talking to the lender, joining a credit union, doing the research, avoiding advance fees, getting terms in writing, and considering selling the car.
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