The one-or-two-billion dollar loan would come on top of a recent Saudi Arabian investment.
Auto title loans are big business in the US, but increasingly, those institutions offering them are facing accusations of predatory lending. With this type of loan, people receive money in exchange for their vehicle's title. The funds come quickly, but they can also come saddled with interest rates of over 100 percent, along with high fees. A recent report from The New York Times examines the practice to see how it is affecting low-income borrowers across the nation.
A fight is brewing in the Michigan state legislature over whether to allow auto title loans (pictured above in California). This type of lending allows people to borrow against the value of their car while they keep driving it, but the money often comes with astronomical interest rates. Critics allege it's a form of predatory lending, but Michigan Senate Majority Leader Randy Richardville (R-Monroe) disagrees.
The auto industry in the US is doing great in 2014. According to our latest By The Numbers report, the Seasonally Adjusted Sales Rate climbed in August to about 17.5 million units, the highest figure since 2006. However, when you scratch underneath the positive surface, the rosy situation might not be as good as it seems. There continues to be a concern among insiders and analysts that while sales are strong now, they might not be sustainable. To keep financial results looking encouraging, some
It looks like Americans are feeling more confident about borrowing money again, at least when it comes to their cars. Credit reporting giant Equifax has released its latest National Consumer Credit Trends Report, and the data suggests that auto lending is booming in 2014.
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