Protecting the Rights of Consumers For Over 25 Years

The Attorney General of Pennsylvania has announced a settlement with Community Loans of America, to resolve allegations that the auto title lending company violated the Pennsylvania Unfair Trade Practices and Consumer Protection Law and its Loan Interest and Protection Law by charging usurious interest rates on title loans to Pennsylvanians.   The Attorney General claimed that Community Loans of America misrepresented to consumers that it was legal for the company to offer and provide title loans to Pennsylvania residents, when such loans charged interest rates far above the state’s 25 percent annual interest limit.  Some of the loans involved interest rates equaling 426% / year.

Under the settlement Community Loans of America will pay $2.2 million in restitution and $50,000 in civil penalties.  It must also cancel $3.7 million in remaining debt, return any repossessed vehicles at no further charge and refrain from furnishing negative credit information to any credit bureau.