In 2011, the most recent year for DBO data, Californians took out 38,148 auto title loans, averaging $3,500 each.
Auto-title loan ads populate the Internet and airwaves with catchy names like “INeedCashNow.net,” “PinkSlipLoan.com” or “123FundMe.com.”
Their pitch is typically the same: Get fast cash with no credit check, based on the value of your vehicle. Bad credit or bankruptcy? Not a problem. No long-term job history? No worries.
Consumers hand over their cars’ pink slips as collateral. If they default, their vehicle is repossessed and sold by the lender.
“The biggest problem is that you are putting such a valuable asset – your car – at risk. Particularly in California, where public transportation is not readily accessible, having a car isn’t a luxury,” said Maria Asturias, of the Center for Responsible Lending in Oakland. “It’s a necessity to keep your job, get kids to school, drive to medical apppointments.”
Read more here: http://www.sacbee.com/2013/08/25/5676395/personal-finance-high-rate-loans.html#storylink=cpy
Read More at: http://www.sacbee.com/2013/08/25/5676395/personal-finance-high-rate-loans.html
Learn MoreDealers who tell customers: “We can’t get you financed unless you buy that $1,500 extended warranty.” Or GAP or etch or whatever.
Dealers who tell customers: “You don’t qualify for credit, but we can get you financed if your wife (or husband) signs with you.”
Dealers who tell customers: “Oh, that’s our Internet price for the car. It’s for good credit customers. Your credit’s lousy, so you’ll need to pay more for the car.”
Read more: http://www.autonews.com/article/20130515/FINANCE_AND_INSURANCE/130519947#ixzz2U3cAauFQ
Learn More“The Convicted Distracted Driver is sitting in a study carrel in the Cal State Fresno library, which, come to think of it, looks a little like a prison visiting room.
“I don’t relish that title,” said Steven Spriggs. ‘But that’s what I am.’
His crime: looking at his iPhone’s map application while driving.”
More at: http://www.latimes.com/news/local/la-me-abcarian-distracted-driving-20130426,0,769309,print.story
Learn MoreAutomotive News, a magazine that caters to dealers, explains different types of forgery.
Excerpts:
Forgery can exist on any document. There are people who think forging a contract is the only forbidden act. Any other document, that’s “kind of OK” in a lot of people’s opinion. But it can be forgery on any document. It can be the spouse signing the other spouse’s name, if the F&I manager knowingly lets it take place. It could be using “signature on file” or “per phone” on documents instead of a signature. That’s OK on some credit card agreements, but not in F&I. Or it could just be someone in sales or in F&I signing.
Why do dealers do it?
They rationalize their felonies. There are two basic reasons, I guess. There could be a financial incentive. More commonly, I think, it could just be laziness. “I forgot to get the signature. I don’t want to call the customer back in. I’ll just do it myself.”
Learn MoreThe FTC’s proposed Buyer’s Guide rule is not pro-consumer.
A move by the Federal Trade Commission to modify its buyers’ guide for used cars is being panned by consumer groups, who say the current guide is ineffective and proposed changes are even worse.
The FTC guide gives consumers critical information about who will pay for repairs if something goes wrong with a purchased car, the FTC says. But consumer groups say the guide actually gives misleading information, for example telling buyers that dealers aren’t responsible for repairs to vehicles sold “as is.”
That’s not completely accurate, according to Rosemary Shahan of the California-based Consumers for Auto Reliability and Safety, one of the groups opposing current and proposed FTC wording.
More accurately, a vehicle sold “as is” may still have an implied warranty on it under federal law, she said. But the agency’s blunt language can mislead buyers and give dealers a shield when denying future repair work.
More at: http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20130217/NEWS/302170358/-1/NEWS0503
Learn MoreAFLC Attorney Angela Smith was quoted in Automotive News, an industry news magazine, in an article concerning an appeal that was recently decided in our client’s favor.
“A California dealership cannot force a customer to arbitrate his individual and class-action allegations of illegal fee collection and other claims, a state appellate panel has ruled.
Plaintiff’s lawyer Angela Smith of San Diego said the decision means dealers ‘can’t just slap stuff on the back of a contract and hope it flies.’ In addition, she said, the arbitration provision as written would have prevented her client from pursuing class-action claims and would have exposed him to high upfront costs and, potentially, would make him liable for the dealership’s legal costs.” Read more: http://www.autonews.com/article/20130123/LEGALFILE/301239996#ixzz2IpL6iGHH
Learn MoreAccording to Consumer Reports, the EPA found that many vehicles in Kia and Hyundai’s lines did not meet advertised fuel economy claims. The New York Times is reporting that one consumer was so frustrated with the fuel economy in his 2012 Hyundai Elantra, he made this website:http://www.my2012hyundaielantragetslousygasmileage.com/ For specifics and to see if your vehicle is one affected by Kia’s and Hyundai’s claims, check out the chart below from the Consumer Reports’ website. If your vehicle is listed, head over to www.hyundaimpginfo.com or www.kiampginfo.com to claim your refund.
| Make/model | Old EPA mpg | New EPA mpg | ||||
| City | Hwy | Combined | City | Hwy | Combined | |
| 2011-2013 Hyundai Elantra | 29 | 40 | 33 | 28 | 38 | 32 |
| 2011-2013 Hyundai Sonata Hybrid | 35 | 40 | 37 | 34 | 39 | 36 |
| 2012-13 Hyundai Accent | 30 | 40 | 33 | 28 | 37 | 31 |
| 2012-13 Hyundai Azera | 20 | 29 | 23/24 | 20 | 29/29 | 23 |
| 2012-13 Hyundai Genesis 3.8 | 19 | 29 | 22 | 18 | 28 | 22 |
| 2012-13 Hyundai Genesis 4.8 | 17 | 26 | 20 | 16 | 25 | 19 |
| 2012-2013 Hyundai Tucson | 21 | 28 | 23 | 20 | 27 | 23 |
| 2012 Hyundai Veloster (manual) | 28 | 40 | 32 | 27 | 37 | 31 |
| 2013 Hyundai Santa Fe Sport | 21 | 28 | 23 | 20 | 26 | 22 |
| 2013 Hyundai Veloster | 28 | 40 | 32 | 27 | 37 | 31 |
| 2012-2013 Kia Optima Hybrid | 35 | 40 | 37 | 34 | 39 | 36 |
| 2012-2013 Kia Rio | 30 | 40 | 33/34 | 28/29 | 36/37 | 31/32 |
| 2012-2013 Kia Sorento | 21 | 28 | 23 | 20 | 26 | 22 |
| 2012-2013 Kia Soul | 26 | 34 | 29 | 23/24 | 28/29 | 25/26 |
| 2012-2013 Kia Sportage | 21 | 26 | 23 | 20 | 25 | 22 |
Chart from Consumer Reports: http://news.consumerreports.org/cars/2012/11/epa-finds-hyundai-exaggerated-fuel-economy-claims-refunds-coming-to-customers.html
Learn MoreAuto Fraud Legal Center has recently taken on a client who has strong legal rights against Premier Nissan of San Jose. AFLC will allege on behalf of the clients that Premier Nissan of San Jose committed egregious violations of California law.
Did you purchase a vehicle from Premier Nissan of San Jose? Are you having problems with the vehicle? Did you have problems with the dealership? Contact AFLC for a free case and contract review by one of our attorneys. You can also read up on 12 of the most common auto dealer tricks to see if you were defrauded by Premier Nissan of San Jose or any other dealer in California.
Learn Morehttp://lifeinc.today.msnbc.msn.com/_news/2012/05/31/11959202-shady-car-dealers-targeting-military-buyers?lite Holly Petraeus, director of the Office of Servicemember Affairs at the Consumer Financial Protection Bureau, warns military personnel to be on guard when they walk onto a car lot.
“You have these car places that spring up around military installations selling used cars for a very marked-up price and then putting high financing on top of that,” she says.
Military personnel can be especially vulnerable customers. They’re young. This may be their first car purchase. They often have a limited or negative credit history.
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