After much discussion and controversy, the California Senate is considering new regulations on used car dealer lending practices. “Buy Here Pay Here” used car dealers would be considered “lenders” under the newly-introduced bill SB 956 and regulated by the Department of Corporations, according to The Los Angeles Times.
Pay Here Buy Here used car dealers operate differently than many other dealerships as they finance car purchases themselves, not through someone else such as a bank or credit union. As such, they make installment loans with consumers with very little government regulation. These types of dealers may charge too much for older model used cars, have unfavorable repossession policies and charge incredibly high interest rates for their loans.
The new bill would require, among other things, Buy Here Pay Here dealers to cap interest rates at 17%, prohibit placing GPS locaters on cars and devices to keep cars from starting when the consumer is behind in his or her payments.
Car dealers often present themselves as offering great deals for consumers they serve. However, some dealers may choose to deceive their customers and advertise the vehicles they sell in a deceitful way. If you believe you have suffered from dealer fraud, San Bernardino used car fraud attorney, Howard D. Silver, can help.