Consumer Finance Insights
August 26, 2020

Michigan AG Settles With Online Car Loan Lender for $1.8 Million

On August 26, 2020, Michigan’s Attorney General announced that it had reached a $1.8 million settlement with an online car title loan company.  The company is alleged to have sold online car loans to Michigan consumers with illegal interest rates in the triple digits, including rates as high as 231 percent.  Michigan law limits the allowable finance charge to twenty-five percent for vehicle loans.  Under the settlement agreement, the company agreed to contribute $1.8 million into a settlement fund to compensate consumers who obtained the allegedly illegal loans.