On September 23, 2015, the Vermont Attorney General’s Office announced a settlement with a regional automobile title loan company over allegations the company charged illegal interest rates and fees to borrowers. The company operated websites that offered automobile title loans to Vermont consumers. Consumers who were approved for the loans assigned title to their vehicles to the company as security for the loans. According to the Attorney General, the company charged interest rates that far exceeded the rates permitted by Vermont’s consumer protection statute. The company also charged improper fees that also violated Vermont’s consumer protection laws. As part of the settlement, the company agreed to refund approximately $16,000 in interest payments to Vermont consumers and to cancel all loans made to Vermont consumers. The company also agreed to cease all Vermont operations until it obtained the proper Vermont business licenses, and to comply with all Vermont consumer protection laws in the event it resumes business in Vermont.
Blog Enforcement Watch September 24, 2015