LOAN SHARKING by DEALER SERVICES CORPORATION
The phrase “loan shark” is applied to a lender that charges high rates of interest and designs their credit product to make paying off the debt difficult. A borrower is trapped by loans; unable to pay off the principal, late fees and other added costs. Borrowers become indentured slaves as the aim of a loan shark is to keep their customer in debt, a virtual annuity.
Dealer Services Corporation lures used car dealers with the promise of a “credit line” of $100,000 or more. However, there is no actual “line of credit”, just separate loans for each car that the dealer purchases from places such as an auction. Each loan, sometimes referred to as advances, has additional “conditions”
• Fee of $65 to $125 or more for each loan/advance
• Requirement that all principal, interest and fees loan be paid off within 30 days, or…
• 48 hours to pay the loan balance in full if vehicle that collateralized loan is sold by dealer;
• A $65 to $125 weekly late charge if a loan is not paid off within 48 hours
• A “curtailment fee” of $65 to $125 for DSC to grant one 30 day extension
• “VIP Fees” for forced placed insurance
Payment is extracted using all means necessary, even though it is a federal offense to use extortion or threats to collect usurious interest of any other sort, including the practice of making consumer loans without a license in jurisdictions that require licenses.
