Head of federal consumer-protection bureau to investigate ‘buy here, pay here’ used-car dealers

Fed announcement follows intro of California bill
SACRAMENTO – Two days after Sen. Ted W. Lieu introduced a bill to regulate used-car dealers pushing ‘buy here, pay here’ loans at 30 percent interest, the head of the federal agency charged with protecting and overseeing financial services for consumers announced he was investigating the issue.

“California consumers who’ve been ripped off by these shady dealers welcome the Consumer Financial Protection Bureau’s investigation into what has become a growing danger to consumers,” said Lieu, D-Torrance, sponsor of Senate Bill 956. “As it now stands, used car dealers offering these ‘buy here, pay here’ loans are exempt from many of the protections that apply to other areas of finance. Without these protections, consumers are paying the price – often an exorbitant price.”

To read about the federal announcement, click HERE.

To read about Lieu’s bill, click HERE or go to the link below.

 
For more, including additional background, visit Lieu’s Web site at the address below or contact Lieu’s office. Press can contact Ray Sotero at (916) 651-4028 office; (916) 834-1128; or ray.sotero@sen.ca.gov
Ted W. Lieu chairs the Senate Labor Committee and represents nearly 1 million residents of Senate District 28, which includes the cities of Carson, El Segundo, Hermosa Beach, Lomita, Manhattan Beach, Redondo Beach and Torrance, as well as portions of Long Beach, Los Angeles and San Pedro. For more, visit www.senate.ca.gov/lieu