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Illegal Financial Practices Lead To CFPB Fines, Lawsuits Against Auto Title-holders

Thursday, October 13, 2016
Charlene Crowell | Pittsburgh Courier
Charlene Crowell

Car-title loans provide a percentage of a vehicle’s total value in exchange for the promise of quick cash. Unfortunately, when car titles are used as collateral for one of the most predatory and high-cost consumer loans, another cycle of debt can begin. The typical car-title loan is refinanced eight times and comes with triple-digit interest rates as high as 300 percent. Each year, car-title loans strip $4 billion in fees from consumers. The looming threat of repossession, which affects one in five consumers, often prompts these costly renewals.