Loans to Car Buyers Questioned in Report

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00007284-loans-to-car-buyers-questioned-in-report/

Car buyers seeking loans from automobile dealers in New Jersey fall victim to “undisclosed finance markup charges,” with minorities more likely to be overcharged than whites, according to a report released Wednesday by a watchdog organization.

New Jersey Citizen Action is pressing Attorney General Peter C. Harvey to launch an investigation into the relationship between dealers and lenders, which the report states has cost Garden State car buyers at least tens of millions of dollars since 1999.

The practice of lenders letting car dealers subjectively raise the interest rates on loans past the “buy rate” determined by a consumer’s credit score benefits dealers and finance companies, which share the profit, the report claims.

For this complete story, please visit Loans to Car Buyers Questioned in Report.

Loans to Car Buyers Questioned in Report

Unknown Author

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