10 Repo Agents Agree to Stop Working for Title Loan Co’s in NY

Title loan lenders are under fire from New York Attorney General Eric Schneiderman who announced this week that he reached “agreements” with 10 repossession agents to stop accepting their repossession assignments.Interest Rate Breakdown Payment Too Much Debt Charging Credit

Title loan companies do not establish a physical presence in New York to avoid  its 16 percent maximum loan interest rate for unlicensed lenders, according to a press release from Schneiderman’s office. According to the press release, these out-of-state title loan lenders are charging interest rates ranging from 100 percent to more than 700 percent. A title loan, which is a type of payday loan, can often worsen a consumer’s financial problems because many are unable to pay off the loan when it becomes due, according to Schneiderman. Instead, the payment periods are extended, resulting in additional interest.

Repo agents not accepting his “agreement” received a warning from Schneiderman:

“Any other business that repossesses the vehicles of New Yorkers based on illegal title loans should recognize that my office will not tolerate this kind of behavior.”

You can read the full press release here.

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Donald Maurice provides counsel to the financial services industry, successfully litigating matters in the state and federal courts in individual and class actions. He has successfully argued before the Third, Fourth and Eighth Circuit U.S. Courts of Appeals, and has represented the financial services industry before several courts including as counsel for amicus curiae before the United States Supreme Court. He counsels clients in regulatory actions before the CFPB, and other federal and state regulators and in the development and testing of debt collection compliance systems. Don is peer-rated AV by Martindale-Hubbell, the worldwide guide to lawyers. In addition to being a frequent speaker and author on consumer financial services law, he serves as legal counsel to DBA International and as chair of the ABA's Bankruptcy and Debt Collection Subcommittee. He serves on the governing Board of Regents of the American College of Consumer Financial Services Lawyers and on the Governing Committee of the Conference on Consumer Finance Law .