January 10, 2024

National auto title lending company Community Loans of America (CLA) has agreed to pay $2.2 million in restitution and cancel $3.7 million in outstanding debt after an investigation by the Pennsylvania Attorney General’s Office found it subjected Pennsylvanian borrowers to unlawful lending practices and exorbitant interest rates.  Title loans are effectively prohibited in Pennsylvania because they are high-cost loans and lenders typically charge interest rates that are far above the state’s 25% annual interest limit.  CLA still managed to collect money and repossess vehicles from Pennsylvanian consumers by claiming to have offices in the state but redirecting consumers to locations in Delaware.  PA AG

Tagged in: Misrepresentations,