Auto lenders should expect increased scrutiny and legal action from state regulators and law enforcement in the coming months, legal experts tell Auto Finance News. The move will come on the heels of criminal charges brought last week by the New York State Department of Financial Services against subprime lender Condor Capital Corp. for allegedly running a scheme to bilk customers out of millions of dollars. California, Illinois, Massachusetts, Minnesota, and New York are on the short list for increased scrutiny, the lawyers said. With the Dodd-Frank Act, state regulators can use both state and federal law — whichever is more advantageous in the particular circumstance — to pursue auto lenders, said Braden Perry, a partner at Kansas City, Mo., law firm Kennyhertz Perry LLC. The Condor case is the first Dodd-Frank legal action brought by a state regulator, according to DFS.
I have a loan on my car. They have charged me outrageous interest. Saying i owe 19,000. When that was balance in may 2013. Can’t get them on the phone now that someone totaled my car. Insurance needed to pay what car is at value today. What does all this mean for customers?