Colorado AG Secures Judgment Over Illegal Auto Title Loans

Auto Finance  •  Debt Collection  •  State AGs

Toy CarOn November 30, 2016, the Colorado Attorney General’s Office announced that it had secured a judgment in Colorado state court against affiliated lenders who operated an illegal auto title loan scheme. The companies allegedly used fictitious names in extending credit services, and allegedly charged consumers usurious interest rates for personal loans, sometimes exceeding 300% APR, in violation of Colorado law. The AG alleged that over 400 consumers had been affected by these practices, and that in some cases consumers’ vehicles were repossessed after they failed to pay the illegal rates. The court ordered the companies to pay over $24,000 in restitution, to pay over $580,000 in penalties, and to release more than 400 title liens, worth over $800,000.

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