Auto Title Loans One in Three Default, One in Five Repossessed

The Consumer Financial Protection Bureau (CFPB) issued a report finding that one-in-five borrowers who take out a single-payment auto title loan have their car or truck seized by their lender for failing to repay their debt. According to the CFPB’s research, more than four-in-five of these loans are renewed the day they are due because borrowers cannot afford to repay them with a single payment. More than two-thirds of auto title loan business comes from borrowers who wind up taking out seven or more consecutive loans and are stuck in debt for most of the year.
“Our study delivers clear evidence of the dangers auto title loans pose for consumers,” said CFPB Director Richard Cordray. “Instead of repaying their loan with a single payment when it is due, most borrowers wind up mired in debt for most of the year. The collateral damage can be especially severe for borrowers who have their car or truck seized, costing them ready access to their job or the doctor’s office.”  Read more..
A picture of a carnivore feeding on its prey comes to mind when reading the statistics on auto title loans.  Those who can least afford to loose and replace their vehicle are hostage to title loans that roll over time and time again, make the overall loan in excess of the value of the vehicle and/or the allowed limits on interest rates in the state where the borrower lives.
I understand an animal hunting to survive, but I do not understand the greed in the hearts and souls of those lenders who make loans knowing that 80% of the borrowers cannot pay the loan and will have to roll one loan into another.  My hope is there is a special place in the after life for these folks.

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