Car Title Lenders Charged with Deceptively Advertising Cost of Loans
The Federal Trade Commission (FTC) has approved final consent orders with two car title lenders that the agency says failed to disclose important conditions and financing information about their title loans to consumers.
Under the approved orders, First American Title Lending and Fast Cash Title Pawn are prohibited from failing to disclose all the qualifying terms associated with obtaining a title loan at its advertised rate and what the finance charge will be after an introductory period ends; and from misrepresenting any material terms of its loan agreements.
First American is also prohibited from stating the amount of any down payment, number of payments or periods of repayments, or the amount of any payment or finance charge without visibly and clearly stating all the terms required by the Truth in Lending Act and Regulation Z.
The FTC encourages consumers to shop around for their loan, and to look to their bank or other lenders for options that may be more affordable than a car title loan.