Craig Henry PLC filed a new action this week against “Auto Loan, LLC.” Kentucky law requires consumer loan companies and vehicle title loan lenders to be licensed by the Kentucky Department of Financial Institutions before making loans within the Commonwealth. Auto Loan does not have any such license.
Craig Henry’s client was solicited by Auto Loan and borrowed $1,000 to buy Christmas gifts for his family. Within days after an alleged default on the loan, our client’s vehicle was repossessed, even though he never signed a security agreement pledging his vehicle as collateral for the loan and even though a lien was never placed on his title. The car, valued at more than $20,000, was sold at auction to satisfy the loan. Our client never received notice of the sale or any proceeds from it. His car was effectively stolen.
Auto Loan has been subject to enforcement actions across the country for consumer protection violations, most recently in Washington. We believe they have used the business names Car Loan LLC, Liquidation LLC, Vehicle Liquidation LLC, Sovereign Lending Solutions, and Title Loan America.
If you have been the victim of a similar scam, please call us to determine whether we can help you.