Jan 22, 2015 Phil Burgess
It's an unfortunate thing when scammers try to take advantage of unsuspecting car title loan borrowers. Six people were charged last October for unlawfully possessing the vehicles of those who fell behind on loan payments, according to West Side Today.
Stories like this are the very thing that gives lawful lenders a bad name, despite the majority who are just trying to do their job. Those following the law and working well with borrowers are trained to create schedules and try to find the best solution for paying back a loan when the time comes, but scams like the one named may prevent the public from realizing this.
Those who taint the name
The West Side Today reported that the six were accused of offering car title loans through unlicensed finance companies with an interest of 150 percent, as well as asking consumers to pay a premium to get their car back after it was taken away. Scams like these have encouraged lawmakers to put more restrictions of car title and short term lenders.
The St. Louis Post-Dispatch highlighted that there has been discussion about putting warning labels on car title loans and short term lending opportunities. However, lenders are trained not to treat consumers in this manner.
Just following the rules
Despite the scams and critics, there should be better effort to make it known that legitimate lenders are not the real villains. A line should be drawn between those who are obeying the law and those who are not, and not many reports attempt to make that distinction. GazetteNET, for example, discussed auto title loans and how they're the "latest way to beat up on the little guy" - however, it only highlighted auto title loans in Massachusetts, a state in which the law prohibits these types of loans. Never did the article touch upon the states where it is perfectly legal to help the public receive immediate money they need.
This sort of view about loan lenders is common, but it should change. There are scammers in every kind of industry, however, they sadly seem to overshadow the public's view on legitimate loan lenders. They typically offer to work with clients and be certain that they are capable of making payments. Borrowers always remain responsible for paying back the money and loan lenders are available to help them do just that.