A good portion of Elizabeth Warren’s book A Fighting Chance concerns her fight to establish the Consumer Financial Protection Bureau (CFPB). The banks fought her every step of the way, but the agency was approved and is functioning. It has mandated more easily understandable mortgage and loan agreements.
During the approval battle, Warren wanted to include car loans in the CFPB’s purview, but all over the U.S. car dealers lobbied their members of Congress to take car financing off the table.
Today a front page article in the New York Times explained how car companies are using deceptive practices called “title loans.” The average car buyer doesn’t read the small print and wouldn’t understand it if he or she did. (Before you say that’s their fault, when is the last time you read the agreement for a computer program or a medical procedure?)
I don’t understand how title loans work even after reading the article, but they involve borrowers turning over the title of their cars in exchange for cash.
It is always amazing to me how many vicious crooks inhabit the financial world. As Senator Warren says, “The system is rigged.”
During the approval battle, Warren wanted to include car loans in the CFPB’s purview, but all over the U.S. car dealers lobbied their members of Congress to take car financing off the table. title loans Long Beach CA
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