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Car loans bill

From today's paper:

Car dealers regularly shop loans for new and used cars to a variety of banks, said the center’s Chris Kukla, often getting loan offers that vary in interest rates. Consumers, Kukla said, often don’t know if they’re getting the best of those rates.

“That’s the really tricky part,” he said. “There’s no way for consumers to know. The dealer is under no obligation to tell them.”

Frequently, finance companies can offer a “dealer reserve,” an incentive to the deal to put the customer in a higher-priced loan, according to Kukla.

Such reserves would be outlawed under a bill filed by Rep. Dan Blue, a Raleigh Democrat, and backed by Greensboro Reps. Pricey Harrison and Earl Jones.

Click here for the full story.

The bill is H 1223.

It is supported by the Durham-based Center for Responsible Lending.

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