Consumer Bureau Action Tracker

CFPB – Auto Cash Leasing, LLC, Interstate Lending, LLC, Oasis Title Loans, LLC, Phoenix Title Loans, LLC, Presto Auto Loans, Inc.


State

Arizona

target

Presto Auto Loans, Inc.

Topics

Small-Dollar Lending, Enforcement, Payday Loans

The CFPB sued five Arizona auto title lenders because the companies allegedly “didn’t disclose the annual percentage rate on their loans in ads” and would advertise lower rates instead. The loans were “targeted to borrowers with low credit scores” and would force many customers into cyclical debt, unless they were willing to risk losing their vehicle.

  • The CFPB alleged “the five companies didn’t disclose the annual percentage rate on their loans in ads. Rather, the companies cited various other rates that were typically lower.” [Russ Wiles, “Federal watchdog sues 5 Arizona auto lenders”, The Arizona Republic, 09/21/16]
  • “Auto title loans, which are targeted to borrowers with low credit scores, are secured by the title to a vehicle, which serves as collateral. If a person can’t repay the initial loan, he or she must borrow again or risk losing the vehicle.” [Russ Wiles, “Federal watchdog sues 5 Arizona auto lenders”, The Arizona Republic, 09/21/16]

Status

Active


2016-CFPB-0021 9/20/2016 12/20/2016

CFPB Sues Five Arizona Title Lenders for Failing to Disclose Loan Annual Percentage Rate to Consumers
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/presto-auto-loans-inc/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • Pending
  • Not Available

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