Pandemic Doesn’t Slam Brakes on Bad Auto Loan Practices

11 03 2020

SITUATION:
Pandemic worsens existing consumer problems with car buying & financing.
Rise in consumer complaints about auto purchasing, leasing and financing.
Consumers appear to need more special protection during the COVID-19 crisis.
Regulators & Policymakers must also take permanent action to protect consumers.
Lenders claim bans on repos, suspended collection, & consumer relief.

SIGNIFICANCE:
Consumer buying cars are  looking for protections from the scams and abuse.
Such complaints are common in America’s current vehicle finance marketplace.
Policy makers must step up enforcement of consumer protection laws.
On-line vehicle sales now offered with online auto financing.

SOLUTIONS:
During the Pandemic, policymakers must provide access to loan relief programs.|
Considering ban on repossessions, debt collection, & negative credit reporting.
Still predatory or abusive auto loan practices continue to go on.
Need to control excessive interest rates & stepping up enforcement of existing laws.

STATS:
Each year, roughly 60 million Americans buy or lease a new or preowned vehicle.
More than 2,800 complaints about their car loans between March and July,
Per report by the U.S. Public Interest Research Group.

 SOURCES:
AUTO LOAN COMPLAINTS RISE – https://uspirg.org/feature/usp/auto-loan-complaints-rise?NL=WAW-10&Issue=WAW-10_20201014_WAW-10_69&sfvc4enews=42&cl=article_4

[Based on a report created by U.S. PIRG Education Fund and Frontier Group]

Complaints about auto lenders have surged during pandemic — https://www.cbsnews.com/news/auto-loans-complaints-pandemic-spike-consumer-financial-protection-bureau

WATCH DOG GROUP:
PIRG is a federation of independent, state-based, citizen-funded
United States Public Interest Research Group
Federal Advocacy office:

INFLUENCER WATCH:
Capital Research Center –https://www.influencewatch.org/about-us/

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