WASHINGTON (Legal Newsline) — The Consumer Financial Protection Bureau (CFPB) has filed lawsuits against five title lenders in Arizona – Auto Cash Leasing LLC, Interstate Lending LLC, Oasis Title Loans LLC, Phoenix Title Loans LLC and Presto Auto Loans Inc.
The CFPB alleges these companies failed to disclose the annual percentage rate in online advertisements about their title loan.
Each lawsuit is an individual case, seeking civil monetary penalties and administrative orders that would force the lenders to adopt new business practices.
Auto Cash Leasing went into business in 1999, Interstate Lending in 2005, Oasis Title Loans in 2013, Phoenix Title Loans in 2013 and Presto Auto Loans in 2002. Each company operates in Arizona and markets to consumers online.
They all sell auto title loans – secured loans for which the vehicle’s title serves as collateral. Once involved in the loan, borrowers must repay the initial amount over a period of time, or re-borrrow, or lose the title to their vehicle.
The case will go before an administrative law judge from the Bureau’s Office of Administrative Adjudication, an independent adjudicatory office within the bureau.