By: Daily Record Staff//April 2, 2014
By: Daily Record Staff//April 2, 2014//
Agreements have been reached with 10 businesses that will greatly limit the marketing of a type of payday loan, called title loans, to unsuspecting New Yorkers.
“I applaud these companies for agreeing to stop obeying orders from predatory title-loan companies that take advantage of unsuspecting New Yorkers,” Attorney General Eric T. Schneiderman said Tuesday in announcing the agreements.
Payday lenders market the loans to consumers with poor credit histories as a fast way of obtaining cash and require borrowers to pledge their motor vehicles as collateral. As part of the scheme, national companies take repossession orders centrally, then pass them on to repossess the vehicles to local businesses in their networks. The 10 companies party to the agreements will not repossess vehicles at the request of title-loan companies.
• Advanced Recovery of New York Inc. of Rochester;
• ALSCO, Buffalo;
• Buffalo Auto Recovery Service LLC;
• Del Mar Recovery Solutions Inc., Carlsbad, Calif.
• Empire Auto Recovery Inc., Plainview;
• Minnesota Repossessors Inc., Maple Grove, Minn.
• Priority Recovery Inc., New Windsor;
• Tri-City Auto Recovery Inc., doing business as TCAR Recovery & Remarketing Services, Burnt Hills;
• Victory Recovery Services Inc., Buford, Ga.; and
• Loss Prevention Services LLC, Grandville, Mich.