The Pennsylvania Department of Banking and Securities recently issued a new press release warning consumers about illegal auto loans. The release was prompted by a recent Commonwealth Court decision.
The Department advised Pennsylvania consumers seeking relief from illegal loans made in the names of Sovereign Lending Solutions, Car Loan LLC, and Autoloans, LLC, which used car titles as collateral, with very high and illegal interest rates of their rights and claims.
The Commonwealth Court’s order requires these companies to:
- Stop making loans to Pennsylvania residents;
- Stop collecting any payments of principal or interest on any existing loan from any Pennsylvania resident;
- Stop repossessing cars from Pennsylvania residents;
- Release all liens on file at the Pennsylvania Department of Transportation; and
- Return all titles to Pennsylvania residents.
The department advised consumers that:
- These companies cannot legally collect any money from Pennsylvania residents in interest, fines, penalties or principal;
- These companies cannot repossess the cars of Pennsylvania residents whose titles were offered as loan collateral; and
- Any GPS unit installed in Pennsylvania vehicles on behalf of these companies should be removed to help protect the vehicle from illegal repossession.
If any of these companies takes any of these actions against you or someone you know, you should contact a qualified attorney right away.
You can see the actual release by pointing your browser here: http://www.media.pa.gov/pages/banking_details.aspx?newsid=89
If you think you have been the victim of any form of Dealer Fraud, of any form of consumer fraud or abusive debt collection, then you should contact a qualified attorney right away.