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Consumer Rental Purchase Agreement Act - A Wolf in Sheep's clothing

Congressman William Lacy Clay (D-MO) sponsors a bill protecting predatory lenders. House of Representative bill 1744 was introduced on March 26, 2009 claiming the purpose is "to protect consumers against unfair rental-purchase practices".

The actual purpose is to sweep aside The Consumer Credit Protection Act and allow unscrupulous lenders free reign on the public. Many of our lending laws and regulations protect consumers from unscrupulous lenders. For example, there are many statutory safeguards to prevent a lender from foreclosing on a consumer's property without adequate notice and opportunity to cure the default. The new "rent to own" scheme concocted by these hoodlums would sweep aside all of those protections in a moment.

Congressman Clay's bill will allow lenders to supersede any State law to the extent that such law ""

(1) regulates a rental-purchase agreement as a security interest, credit sale, retail installment sale, conditional sale or any other form of consumer credit, or that imputes to a rental-purchase agreement the creation of a debt or extension of credit, or

(2) requires the disclosure of a percentage rate calculation, including a time-price differential, an annual percentage rate, or an effective annual percentage rate.

That's correct, no APR disclosure is required. That would make sense if you were discussing rentals that last no more than a few weeks. However, this APR non-disclosure defies logic regarding a 24 or 36 month car rental. That is called a lease, not a rental.

Lest you think that this characterization is an exaggeration, just listen to the words of Dealer Services Corporation (DSC) president, John Fuller, himself. Mr. Fuller says his "Ren'T'Own" automobile financing "can separate a delinquent "renter" from his beloved car in a New York minute""no sticky consumer-protection laws to slow things down".

Dealer Services Corp. has paid over $80,000 to D.C. lobby firm BARNES & THORNBURG, LLP. According to The Center for Responsive Politics http://www.opensecrets.org/ , DSC is lobbying Congress for legislation regarding the Rent-to-Own Industry.

Stop the predatory lending now. Call or write your representative immediately.

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Anonymous
#74047

Automotive Finance Corporation (AFC) went to Arkansas and asked for repossession of the cars in New Jersey.

Too bad AFC did not have the vehicles; they just converted the titles from New Jersey to Arkansas.

When Patrick Dunn's auto dealership in New Jersey went out of business a few months ago, something weird happened to "40 or 50" customers who had bought cars from him, writes Bob Braun at NJ.com.

The company Dunn had taken out business loans with, Automotive Finance Corporation (AFC) went to Arkansas and asked for repossession of the cars in New Jersey.

The Arkansas department of motor vehicles assumed AFC meant for unsold cars on the lot, so they granted the request—and now AFC says it owns titles to cars that people are already driving and paying for.

AFC, part of ADESA and KAR HOLDINGS, Inc. simply defrauded the Arkansas DMV, so the DMV need to take action against AFC. The original titles are in New Jersey; these "duplicate" or "counterfeit" titles are frauds.

Anyone who wants can likely sue for fraud and conversion and collect treble damages.

Federal authorities may want to look up "Misprision of felony" when they investigate Arkansas department of motor vehicles.

Anonymous
#60059

TELL ME YOU’RE STORY

Don’t wait DSC told me they are a milt- million dollar Corporation, so they want you to think you can win against them,

I’m here to say “Yes We Can”. If you have any information or know anyone that has been damage by Dealer Services Corporation (DSC)

Contact Michael Grissom @ 818 749 3288 or email your complaint to supermgauto@charter.net

I am asking for your help in recovering tens of thousands of dollars in illegal fees, interest, late charges and curtailment fees that I paid to Dealer Services Corporation (DSC), an unlicensed lender doing business in Riverside, California. I believe their actions constitute loan-sharking and usury.

On July 27, 2006, I was faxed an application from DSC for a flooring line of credit. DSC had earlier explained to me that their interest rate was less than 10%, and I would be foolish to pass up a chance to obtain a credit line at that low of an interest rate. DSC advised me that I needed to apply for $200,000, because that was their standard flooring line for used car dealers.

I received a fax on August 29, 2006, from DSC congratulating me on my $200,000 credit line. A statement arrived on September 8, 2006, claiming I owed $130,257, of which $113,000 was withdrawn, without my knowledge or permission, just two days after the loan opened. I immediately called DSC to ask why $113,000 was taken from my account, but was told that DSC manager Claude Ponce was...

A week after I complained, DSC manager Claudia Ponce told me DSC wrote checks on my loan to pay brokers who had given vehicle titles to DSC. Saying I had been defrauded, she said do not call the police, but allow her to investigate. She said I must continue to pay DSC or I would be out-of-trust. Over the next 45 days I paid tens of thousands of dollars to DSC, even personally delivering payments to their office.

On October 26, 2006, three DSC employees came to my lot, said I was in default and ordered me to stand aside. They repossessed my cars and told me they had put me out of business. It had been just two months since I had obtained a loan from DSC. Their deliberate and destructive behavior continued by:

• Contacting customers that had purchased cars from me on retail installment agreements and advised that payments must be paid directly to DSC.

• Rewrote consumer contracts for vehicles that I had sold.

While trying to recover the money DSC had stolen from me, I discovered that DSC was an unlicensed California lender. I quickly filed a complaint with the California Department of Corporations (DOC) in March 2007. I have continued to ask the DOC to assist me in stopping this predatory lender, as I discovered DSC’s illegal activities were continuing throughout the state.

Any help that you could offer would be greatly appreciated. I have attached multiple documents for your review. Please don’t hesitate to call if you have any questions.

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