Beware predatory automotive loans [Video]
Posted on Tuesday, July 5, 2016 at 12:25:19 PM
When the economic recession reached its peak roughly nine years ago, predatory lending practices became far more common. The nation's dire credit situation opened the flood gates for alternative loan providers, especially for homes and automobiles, but regulators have increased efforts to put these entities out of business of late.
National Mortgage Professional recently reported that the Consumer Financial Protection Bureau has stated that it will levy more than $24 million in damages from predatory automotive lenders who have preyed on unwitting borrowers. According to the news provider, those $24 million will be distributed among the more than 250,000 consumers who were impacted by predatory lenders.
The source noted that some of the more common illegal practices among the group of lenders included deceptive terms on loans and fraudulent assessments of the raw dollar amount provided to the borrower.
Individuals who are looking to purchase a car but want to avoid these types of entities should consider working with a local, community bank. The professionals in these establishments can help to ensure that loans are not only preferable, but far outside the bounds of predatory lending.