CFPB Finds One-in-Five Auto Title Loan Borrowers Have Actually Vehicle Seized for Failing Continually To Repay Financial Obligation

CFPB Finds One-in-Five Auto Title Loan Borrowers Have Actually Vehicle Seized for Failing Continually To Repay Financial Obligation WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today issued a report discovering that one-in-five borrowers who remove a single-payment car name loan have actually their car seized by their loan provider for neglecting to repay their financial obligation. In accordance with the CFPB’s research, significantly more than four-in-five of those loans are renewed a single day they have been due because borrowers cannot manage to repay all of them with a payment that is single. Significantly more than two-thirds of automobile name loan company arises from borrowers whom ramp up taking right out seven or even more consecutive loans and are stuck with debt for some of the season. “Our research provides clear proof the hazards automobile title loans pose for consumers,” said CFPB Director Richard Cordray “Instead of repaying a single payment to their loan if it is due, many borrowers wind up mired with debt for some of the season. […]