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
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
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.