Monthly Archives: May 2016

Auto title loans show spin-off issues

People who put their cars up as collateral for what are supposed to be short-term emergency loans are being hit with 300% interest rates, a high repossession rate and long repayment periods. That’s according to a Consumer Financial Protection Bureau study released Wednesday. The report is the first from federal regulators to examine the auto title lending industry, which has ...

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Here’s the real reason why payday loans are such a huge problem

A new study from the Consumer Financial Protection Bureau shows how easy it is for cash-strapped borrowers to fall into a vehicle title loan debt trap. Auto title loans share many of the same nefarious qualities that have made their cousin, the payday loan, such a hot target for regulators. Both products are powered by three-digit interest rates (except in ...

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One-time payment car title loans can cause long-term debt

Most borrowers who take out a one-time payment car title loan end up borrowing again because they can’t afford to make the payment when due, according to a new federal study. That’s why much of the auto title business comes from borrowers who end up taking out multiple loans in a row and staying in debt for months, the Consumer ...

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Are auto title loans predatory? A federal study raises concerns.

A report released Wednesday by the federal Consumer Financial Protection Bureau found high rates of vehicle repossession and long-lasting debt within the auto title lending industry. Auto title loans are meant to provide borrowers with short-term access to cash when they need it most. But the CFPB found that for many consumers, loans quickly snowball into long-term debt. The report ...

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Consumer watchdog turns its attention to auto loans

According to a report released Tuesday by the Consumer Financial Protection Bureau, payday loans aren’t the only type of expensive consumer credit that started out as a short-term financial fix but often turns into a long-term debt trap. Consumers who take out auto-title loans are often unable to pay when due and repeatedly refinance to retain possession of their vehicles, ...

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