7 On Your Side
Scammers target those with auto loans
The federal government is warning about a new loan modification scheme. This one is not for home mortgages, but for auto loans.
The Federal Trade Commission filed charges against two companies that claim they will reduce auto loan payments. The FTC says the companies took hundreds of dollars up front from consumers, but failed to actually modify the loans. At least one customer lost her car as a result.
One of the companies, Auto Debt Consulting, tells us the charges are false and customers get refunds if their loans can't be modified. We could not reach the second company, Hope For Car Owners.
The government has previously cracked down on companies that make phony promises to modify home loans.
auto industry, scam, loans, 7 on your side, michael finney
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