CONSUMER ALERT: McCune Davis raising awareness around predatory lending practices and new protections for auto title loan borrowers
– Rep. Debbie McCune Davis,
D-Phoenix (District 30), recently received notification that the Arizona
Department of Financial Institutions is warning consumers about companies
offering online payday loans, and soon auto title lenders will not be allowed to
charge document processing fees. PHOENIX
“I've had ongoing conversations with representatives of the Arizona Department of Financial Institutions. Recently, they confirmed that the department is addressing complaints that Arizonans are getting online offers for payday loans or offers from out-of-state companies that are claiming to be owned by Native American tribes,” McCune Davis said. “Payday loans are no longer legal in our state, and consumers should be aware that some unethical companies are attempting to circumvent the law.”
Additionally, the department issued an alert stating that as of July 1, auto title lenders can no longer charge borrowers document preparation fees.
“This is a step in the right direction,” McCune Davis said. “Consumers will benefit from this but they must still be wary of auto title loans. They should always read the fine print and know what their rights are.”
McCune Davis said she commends the ADFI for its consumer protection work.
“I applaud the department’s efforts to investigate illegal lending products and fees, and to keep consumers informed. I look forward to continuing to work with the department to identify unethical or illegal business practices,” she said.
The ADFI alert on payday loans can be found here: http://www.azdfi.gov/LawsRulesPolicy/Forms/FE-AD-PO-Regulatory_and_Consumer_Alert_CL_CO_13_01%2002-06-2013.pdf.
The auto title lender alert can be found here: http://www.azdfi.gov/LawsRulesPolicy/Forms/DFI-FE-AD-Final%20Regulatory_Alert%20_Secondary_Motor_Vehicle_Dealers_SF13-01-%20052413.pdf.