Government Investigating Used-Car Dealerships over Liar Loans
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Ingram Publishing/Thinkstock(NEW YORK) — Government prosecutors are looking into liar loans, where borrowers’ incomes are inflated to enable them to qualify for high interest auto loans.
“Federal and state authorities, a group that includes prosecutors in New York, Alabama and Texas, are zeroing in on the most powerful, and arguably the least regulated, rung of the subprime auto loan chain, used-car dealerships,” The New York Times reported, citing people familiar with the investigations.
“Already, they have found hundreds of fraudulent loans that together total millions of dollars,” the newspaper added.
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