Predatory High Interest Car Title Loans Take Advantage of Consumers
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