Fast Auto Loans Inc. and Virginia Auto Loans agreed to “forgive” $816,000 in consumer car title loans. Additionally, they agreed to pay the state of Virginia $415,00
Car title loans are not legal in Virginia but thousands of borrowers choose to cross state lines for them every year. If the consumer fails to pay off their car title loan as agreed, their car is certain to be repossessed. APR’s (annualized percentage rates) vary from 120% to 300%+.
It’s common for car title and payday loan companies to call the references borrower’s provide on their application page. And in spite of the Federal Credit Reporting Act, they often reveal your default status with them!
The lawsuit alleged the two car title loan lenders “abused and harassed consumers by calling them at work and at home and disclosed the borrower’s debts to family, friends, and employers listed as references on the apps. Additionally, the borrower’s were threatened with jail and criminal prosecution.”
The two companies denied the allegations.
For more details visit West Virginia Attorney General Patrick Morrisey’s website.