January 30, 2015

The FTC reached settlements with First American Title Lending and Finance Select, two car title lenders, that will require them to stop their use of deceptive advertising to market title loans. The FTC charged that the companies advertised, both online and in print, zero percent interest rates for a 30-day car title loan without disclosing important loan conditions or the increased finance charge imposed after the introductory period ended. “This type of loan is risky for consumers because if they fail to pay, they could lose their car – an asset many of them can’t live without,” said Jessica Rich, director, FTC’s Bureau of Consumer Protection. “Without proper disclosures, consumers can’t know what they’re getting, so when we see deceptive marketing of these loans we’re going to take action to stop it.” FTC

Tagged in: Antitrust Enforcement,