Predatory lending crackdown in PA

(Harrisburg) — The state is cracking down on a type of predatory lending which seems to be on the rise. 

Three companies which offer what are known as auto title loans have been ordered  to stop doing business in Pennsylvania.

Ed Novak, with the Department of Banking and Securities, says Sovereign Lending Solutions, Car Loan LLC and Autoloans LLC, offer loans to consumers who use their car’s title as collateral.

Novak says the high interest rates and fees are in violation of state consumer law.

“These companies can not legally collect any more money from you.  They can not repossess your car and if you have a GPS unit installed in your car you should remove that to prevent an illegal repossession,” he said.

Novak says customers should contact the Department of Banking and Securities at 1-800-PA-BANKS for additional steps they can take.