A consumer watchdog report reveals that 1 in 5 borrowers taking out a single-payment auto title loan have their vehicle seized for failing to repay debt.

The Consumer Financial Protection Bureau (CFPB) found overall that people assigning their cars as collateral for a supposedly short-term emergency loan are suffering high repossession rates, protracted repayment periods, and interest rates soaring to 300 percent.

The report (PDF) is deemed the first from federal regulators to delve on the auto title lending sector, which has significantly grown in years, but stays prohibited in half of the United States. In the similar case of payday loans, the findings could result in additional regulatory measures in the industry. Read the full article...
 

Published on

September 14, 2016