On January 30, 2015, the FTC announced a settlement with two car title lenders for deceptive advertising in connection with offering consumers 0% car loans. The Commission asserted the lenders deceptively advertised 0% interest rates without disclosing material loan conditions necessary for borrowers to qualify for the interest rate, and without disclosing that an increased finance charge was imposed after the introductory 0% rate expired. The settlement alleged that the lenders violated section 5(a) of the FTC Act. As a result of the settlement, the two lenders are prohibited from failing to disclose or misrepresenting material terms, and are subject to a five-year monitoring period by the FTC and required to demonstrate compliance with the order.
Blog Enforcement Watch January 30, 2015