Predatory Auto Loans & Questionable Auto Insurance Quotes

Auto Attorney

Recently the House Financial Services Committee voted on and passed HR 1737, a bill, that would allow for more lenders to prey on consumers and issue high-risk , high-interest auto loans on new and used vehicles.  In effect, it would cancel the 2013 Consumer Financial Protection Bureau federal guidelines which set forth certain obligations for auto loan lenders.

New York Times editorial board member, Teresa Trich, had this to say in a recent editorial piece:

Republican-dominated House committees routinely pass awful bills that please their corporate constituents but go nowhere. The committee vote on this bill, however, was 47 to 10, with 13 Democrats joining all of the Republican members in voting yes. Overall, the bill has 124 co-sponsors, including 55 Democrats. The level of support reflects the power of auto dealers, who are often among the most prominent businesspeople in any given congressional district and who do not want scrutiny of their lending practices.
The bill’s supporters say it would make needed changes to regulatory procedures. What it really would do is condone overcharging and discrimination in auto lending.

Drivers across the country also face ongoing issues with car insurance companies.  Many of these auto insurance companies continue to conduct "Price Optimization" strategies to increase profits as explained by NPR.  

Trich's New York times editorial explains how some auto insurance companies are doing whatever they can to increase profits at the expense of the driver with the insurance policy.

 Farmers, Geico, Liberty, Nationwide and Progressive — rates were almost always higher for unmarried drivers than for married ones. Among those five, however, only Geico was found to charge different prices depending on whether an unmarried driver had never been married, was separated or divorced.
In several cities, Geico and Progressive charged domestic partners more than married drivers.
In addition, the report found baffling increases in premiums for some women who were widowed. It also found evidence that price difference between married and unmarried drivers occurs at various age levels.
The report calls on state regulators to investigate insurers’ use of marital status in auto insurance pricing.
The not unreasonable hunch is that marital status is largely unconnected to risk and thus should not be much of a factor in the pricing of auto insurance.

At the end of the day consumers must make sure they are reading the fine print, seeking information from multiple sources for auto loans and obtaining multiple auto insurance quotes to make sure the consumer is protected.   If you have any questions about your insurance policy or are considering buying auto insurance and have questions, call The Michigan Law Firm, PLLC for a free consult.