D.C. settles suit over Fast Auto Loans
D.C. officials say they’ve reached a settlement with a car title lender in Virginia over loans to D.C. residents that the city says violated its laws.
The city says Fast Auto Loans will refund all interest paid by more than 100 D.C. borrowers and give back repossessed cars. The company charged annual interest rates of 300 percent, while 24 percent is the maximum allowed under D.C. law.
With auto title loans, borrowers put their vehicles up as collateral, handing over the title and a copy of their keys.
Most of the loans by Fast Auto Loans to D.C. residents were made at the company’s Alexandria and Manassas offices The company advertised in the D.C. phone book.
Similar settlements were reached with CashPoint and Loan Max last year.
-- Associated Press
By
Washington Post editors
| April 8, 2010; 2:28 PM ET
Categories:
DC, Maryland, Virginia
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Posted by: DUTCH_MASTERSON | April 8, 2010 2:57 PM | Report abuse
What about the people who just bought the repo's back at RepoFinder.com? I think they've got a bigger mess on their hands than they think.
Posted by: dolomite2001 | April 8, 2010 4:04 PM | Report abuse
These companies don't make their money on the loans. They make their money by repoing you car and selling it. It's a legal scam. They give money to people who can't get money from financial institutions. The people have to pay back the loan in one lump sum usually in 1 to 2 months. You don't they get your car and sell it.
Posted by: Jimof1913 | April 8, 2010 5:46 PM | Report abuse
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what about md residents