Salem, OR – August 20, 2015 – The State of Oregon has joined Pennsylvania in suing an unlicensed title loan company going by the names Auto Loans LCC, Liquidation LLC, Loan Solutions LLC, Management Solutions LLC or Car Loan LLC and is also connected to a host of other individual names including William McKibbin III, Kevin Cronin, Mark Edward Wiener, and Kelly S. Bonner.
This company is allegedly a “Global Client” in the RDN network. Claims of bounced checks coming from Nevada mail box drops as well as earlier warnings from RSIG predate this suit.
State officials have sued a company they say ripped off hundreds of Oregonians by operating an illegal car-loan scam.
Attorney General Ellen Rosenblum and the Department of Consumer and Business Services have filed suit in Multnomah County Circuit Court against Liquidation LLC, alleging the company made predatory car title loans to more than 250 Oregonians and broke Oregon consumer and business laws by operating an illegal car title scam.
The company could not be located for comment Tuesday evening. It has not yet filed an answer in court.
The lawsuit says Oregon consumers who searched online for “title loans” ended up on a third-party loan referral site where they could fill out an application form. The third-party site then sent consumers’ personal information to a company calling itself Auto Loans LCC or Car Loan LLC, according to the suit.
“Oregon consumers thought they were applying for a legal title loan, but were deceived into listing Auto Loans LCC or Car Loans LLC as a secured interest holder on their car titles,” Rosenblum said in a statement. “In addition, the consumers did not know that the company had labeled the loan as a ‘pawn loan’ to be repaid in 11 monthly payments, with a final balloon payment equal to or more than the amount originally borrowed.”
“These phony loans carried triple-digit interest rates, and we believe nobody ever saw the final terms of their loan agreement,” Rosenblum said. “When a consumer ultimately could not pay the astronomical interest on these illegal car loans, the company would threaten repossession. If a consumer actually paid off the loan, they would have paid over three times the amount originally borrowed. This is illegal in Oregon.”
In Oregon, all title lenders must be licensed by the Department of Consumer and Business Services, Division of Corporate and Finance Securities, state officials said. A list of licensed title lenders can be found online at stopunlicensedloans.com. There are currently no online title lenders licensed to do business in Oregon.
“This investigation and subsequent Department of Justice action are a direct result of consumer complaints to our office,” DCBS Director Patrick Allen said in a prepared statement. “If you currently have a loan from either of these companies, stop making payments on these illegal loans and contact the (justice) department.”
Source: The Register Guard