Don’t pay an advance fee for car loan modification help
Friday, May 21, 2010
A number of companies, including Florida-based Auto Relief Group, are telling North Carolina car owners that they can renegotiate auto loans to lower the owners’ interest rates and monthly payments. The up-front fee for this “service” can range from $350 to $1,500.
However, charging an advance fee for loan modification help is illegal under NC law,
and the companies who charge these fees are usually fly-by-night, illegitimate companies. Auto Relief Group has a poor record in dealing with consumers, which earned it an “F” rating from the Better Business Bureau
. Another company running this advance-fee auto loan adjustment scam was recently shut down by law enforcement in California.
Our advice to car owners: steer clear of any company that wants to take your money up-front in order to arrange or negotiate a loan. It’s bad business, and it’s against the law. If you have questions about loans or if you’ve been the victim of a scam, contact Attorney General Roy Cooper’s Consumer Protection Division for assistance at 1-877-5-NO-SCAM. You can also file a consumer complaint online