Governor Approves New California Law Curbing Predatory Auto Title Loans

Today, October 11, 2019, Governor Newsome approved a bill that will limit auto title loan interest rates to 36% and add other consumer protection measures. Heretofore, auto title loans have been ripping off consumers by charging interest rates of 100% APR or more. There was never any justification for higher rates because defaults led to the companies repossessing and selling consumers' cars. Lenders added the cost of repossessing and reselling the cars. According to the California Department of Business Oversight, in 2016 alone he auto title companies repossessed 20,648 vehicles out of 108,080 title loans. When car title companies repossess...

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California AG Sues Paul Blanco’s “Good Car Company”

California’s attorney general sued Paul Blanco's Good Car Company, a Northern California car dealer that heavily advertises on TV accusing it of false advertising and lying on loan documents to boost its profits at the expense of its low-income customers. According to the Attorney General, “For many families, that name could not be farther from the truth." In the 32-page complaint filed in Alameda County the dealer is accused of running a sophisticated scheme to lure customers into a dealership only to later lie about their incomes and the value of the cars they were purchasing to convince lenders to...

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Homeland Security to Check Immigrants’ Credit Scores

Ms Chi Chi Wu of the National Consumer Law Center today flagged the release by the Department of Homeland Security (DHS) of a regulation that greatly expands what will be considered in determining whether an immigrant is considered a potential “public charge” and thus should be denied a visa or green card.  Among the many controversial provisions of this regulation, it requires DHS to consider an immigrant’s credit score and credit report. Ms Wu noted the problems and unfairness of the use of credit scores and reports for purposes of immigration: “Using credit scores and credit reports to determine immigration status...

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CFPB Suit Against Credit Repair Company Lexington Law

The Consumer Financial Protection Bureau (Bureau) today filed a complaint against PGX Holdings Inc. and subsidiaries Progrexion Marketing Inc., Progrexion Teleservices Inc., eFolks LLC, and CreditRepair.com Inc.; and against John C. Heath, Attorney at Law PLLC, which does business as Lexington Law. The lawsuit, filed in U.S. district court in Utah, alleges the defendants violated the Telemarketing Sales Rule (TSR) by requesting and receiving payment of prohibited upfront fees for their credit repair services. Under the rule, companies can only charge fees for telemarketed credit repair services after providing consumers with documentation reflecting that the promised results have been achieved....

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FICO’s New Credit Score

Many lenders have already upgraded, or are in the process of upgrading, to FICO® Score 9. It is FICO's Score version, and it has important changes compared to previous scoring formulas: Third-party collections that have been paid off no longer have a negative impact.Medical collections are treated differently than other types of debt. Unpaid medical collections will have less of a negative impact on FICO® Score 9.Rental history, when it's reported, factors into the score?this may be especially beneficial for people with a limited credit history. Financing a new car? FICO® also has a specialized score called Auto Scores, which is...

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