If you had one of those online title loans that was illegal in your state because the lender was not authorized to make loans in your state, today you’d want to live in Massachusetts.
The Massachusetts Attorney General took action against an illegal online title loan lender and dispatched them. The AG office said, “Pursuant to the judgment, all of the loans issued by Liquidation in Massachusetts are void and all of the liens it placed on Massachusetts vehicles are dissolved. The judgment also prohibits the company from repossessing any vehicles in connection with the loans.” – Source
More than 200 loans made by Liquidation to Massachusetts borrowers are now void under the terms of the judgment. With the assistance of the Massachusetts Registry of Motor Vehicles Title Division, more than 50 liens on consumers’ vehicles have been dissolved and the vehicle owners have been issued new, lien-free titles. Several vehicles that were repossessed by Liquidation and are currently at auction houses are eligible to be returned to their prior owners. The judgment also orders Liquidation to pay $197,600 restitution and $1,135,000 in civil penalties.
Seems like the consumers that fell for the loan offer found a big issue once they went to payoff the title loan. “Although consumers were led to believe that they would pay off their loans in one year, they were never informed that their final payment would be more than the amount originally borrowed.” Rut Ro!
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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.