Herbies Lies about GPS Payment Reminders & Forced Car Repair Warranties
Published: Thu, 01/21/16
Don't Do Stupid Stuff! I've said this to you before!
Title Lenders Doing Stupid Stuff: Again
CFPB TAKES ACTION AGAINST HERBIES AUTO FOR UNLAWFUL LENDING PRACTICES
The CFPB took action against Herbies Auto Sales, a buy-here pay-here title used car dealer, for abusive financing schemes, hiding auto finance charges and misleading consumers. Herbies will pay $700,000 in restitution to harmed consumers, with a suspended civil penalty of $100,000.
Read more online:
http://paydayloanindustryblog.com/title-loan-lies-gps-devices-forced-repair-warranties/
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Specifically, the company:
Hid finance charges and advertised a far lower APR than consumers received:
Herbies lied to consumers about finance charges and APRs in marketing materials, including on showroom window displays, and in Truth-in-Lending Act disclosures.
Hidden finance charges included $1,650 for a required repair warranty and $100 for a required GPS payment reminder device.
Hid finance charges that stemmed from a refusal to negotiate car prices: Herbies refused to negotiate prices with credit customers, but did negotiate with cash customers. The resulting finance charge should have been included in the disclosed cost of credit.Used abusive practices: Herbies’ financing scheme lured consumers with misleading advertising and then kept them in the dark about the true cost
Read more online:
http://paydayloanindustryblog.com/title-loan-lies-gps-devices-forced-repair-warranties/
Google URL Shortner: http://goo.gl/J17eEi
Keep it clean, Boys!
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