One day last December, Tanisha Coley visited a Kia dealership in Stamford, Connecticut and filled out a computer-based credit application to figure out what kind of car she could afford. Soon after, she left without buying a vehicle, but ended up more than $17,000 in debt anyway. Weeks later, Coley discovered something alarming had been registered on her credit report: an auto loan, opened on Dec. 12, 2016 at the dealer, for a 2013 Mazda. The loan had a total balance of $17,737, the report said. But Coley was nowhere near the dealer that day, her attorney, Joanne Faulkner, said. “The dealer actually called her that day and said, ‘We’re still trying to get you this car,’” Faulkner told Jalopnik. The Kia dealer, according to a lawsuit Coley later filed, “had electronically booked the car loan for Ms. Coley with Credit Acceptance Corp. for a 2013 Mazda that she never purchased or took possession of.” The car was a ghost. Coley, a mother of five, … [Read more...] about Car Dealers Are Using Electronic Loan Contracts To Scam Buyers Into Horrible Situations
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When Don Foss started his career as a car salesman, he recognized early on that most of his prospective customers had shaky credit, leaving them with few options for financing to buy a vehicle. So in 1972, he started subprime auto lending company Credit Acceptance Corporation to fill that void. He knew lending money to buyers with low credit posed an inherent risk, and he knew the business couldn’t solely be focused on closing sales. It had to excel at collecting loan payments too. “I began to realize that, even as I worked as hard as I possibly could at selling cars, we would have to do better on the collections side,” Foss said in 2009, reflecting on how he’d managed to grow and sustain a business that had provided financing to low-credit car buyers for nearly 40 years. It certainly ended well for Foss, who stepped down last year, netting $128 million upon retirement by selling off his company shares. Indeed, over time, the collections side of the business has … [Read more...] about How a Subprime Auto Lender Consumed Detroit With Debt and Turned Its Courthouse Into a Collections Agency
Funbag Time for your weekly edition of the Deadspin Funbag. Got something on your mind? [Email the Funbag](mailto:[email protected]). Your letters: Mark: What’s your favorite overused cliche? I’ve always liked “don’t get mad, get even,” even though I’m always mad and never get even. There are two I use to the point of insufferability at home. The first one is “You can lead a horse to water, but you can’t make him drink.” This is because I have three children and two of them don’t fucking eat. I do everything the parenting books tell you do. I cook them meals from scratch. I present them with options on the plate. I’m not forceful or demanding. Do they eat? Reader, they do not. So I mutter that cliché under my breath at every meal and then proceed to eat their leftovers. And that cliché applies in the broader sense of parenting too, because I can do everything in my power to get my children to do … [Read more...] about What Is Your Go-To Cliché?
Auto insurance companies base their rates on national data averages, but with OnStar, they can base their rates on the way that a person actually drives. Learn about insurance rates in this video from Medialink. MediaLink Getting a driver's license is a rite of passage for many teens. The promise of the open road, the freedom of mobility without adults -- it's all rather intoxicating. Until your parent or guardian sees the hike on the insurance bill. If you're paying your own driving expenses and you're under a certain age, you're likely shelling out more than your elders for a similar level of coverage. For most drivers, the "magic age" when your rates go down is 25, just as you've probably heard. But many factors determine your insurance rates, so these age distinctions may not hold for everyone. The secret to decoding insurance rates and premiums lies in understanding where they come from. Understanding how and why rates can change is essential to making sure you've got the … [Read more...] about Does car insurance lower at a certain age?
There are several ways to save money that don't involve forgoing your daily latte — assuming you have one. Greg Paprocki/Getty Images Are you looking to save money and reduce debt, but tired of hearing the same money-saving tips? (Don't buy Starbucks coffee; make your own. Don't go out to lunch at work; brown bag it.) Then check out these five clever strategies suggested by experts from the National Association of Personal Financial Advisors. 1. Cut the Cord on Cable TV Almost all of the financial planners we contacted advise clients to cancel their traditional cable TV subscriptions. Cable TV prices have skyrocketed 53 percent since 2007 to reach an average price of $100.98 a month in 2017. Over that same period, streaming video services have reshaped the entertainment landscape for a fraction of the cost. Yes, you still need to pay for internet service, but that will run you an average of $60 a month, or less if you choose a lower-bandwidth package. Netflix recommends … [Read more...] about 5 Ways to Save Money (Besides Giving Up Lattes)