LANSING, Mich. (Legal Newsline) – Michigan Attorney General Bill Schuette filed a complaint and motion that requests a temporary restraining order and preliminary injunction against Liquidation Inc. to stop alleged collection activities on illegal title loans.
Ferguson’s suit states that Liquidation and several associated alias companies provided unlawful vehicle loans. Liquidation has allegedly charged more than 440 consumers in the state with triple-digit interest rates, despite not having authorization to do business in Michigan or having clearance as a limited liability company. The company’s interest rates have ranged between 161.95 percent and 251.03 percent, the suit states.
“This company’s business model appears designed to take advantage of financially vulnerable consumers with damaged credit histories,” Schuette said. “For many of these consumers, their vehicle is likely their largest asset and only means of transportation, making these illegal loans devastating to their pocket books and even to their ability to go to work.”
Schuette's office states Liquidation would take possession of the vehicle title and install GPS-tracking devices in vehicles before giving loans. Consumers allegedly would not receive loan documents as well. Schuette’s office first took action against these alleged practices with a December cease and desist order.