Protecting consumers in the auto lending market [Video]
Posted on Wednesday, May 18, 2016 at 1:07:57 PM
Regulators and advocacy groups have been increasingly aggressive in their efforts to protect consumers across a range of lending markets, including those that involve automotive financing. Due to newer, unchecked options arising, more scrutiny of the practices involved is certainly well founded.
Manatt Phelps and Phillips LLP recently reported that Massachusetts Attorney General Maura Healey has effectively won a challenge against two alternative lenders in the state who were partaking in arguably predatory practices. According to the firm, the two will now have to pay out $7.4 million in damages, while the specifics of the case pertained to hidden costs and excessively high rates on extraneous services.
Consumers interested in purchasing a car today do not have much reason to go to these types of lenders any longer. Rates are historically low across the board, and even those with bad credit can get loans with reasonable terms and acceptance requirements. By working with a smaller, local bank to navigate the loan application process, automotive purchasers will have what they need to make the most financially sound decision on a financing arrangement.