Automobile name loan adverts gloss on the risks: Plain Dealing

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CLEVELAND, Ohio — “Got your mo-ney, your mo-ney,” a woman sings as she clutches handfuls of bills. A guy’s vocals booms, “Turn your vehicle into money!”

Automobile name loan providers promote greatly to persuade ohioans that are cash-strapped borrow on their paid-off vehicles, exactly what you’ll not hear in those commercials is the fact that the annualized rate of interest from the loans may be 300 % or even more.

In addition will not learn about the potential risks – that borrowers can lose their cars.

Like pay day loans, car name loans are designed to be tough to settle in order for customers will restore loans, making loan providers fat brand new costs.

However with name loans, a customer’s vehicle is at risk.

A single mom from Cleveland discovered those risks belatedly like many borrowers.

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