MAY 2004

NY Attorney General Calls
for Rate Cap on Auto Loans

New York State Attorney General Eliot Spitzer has called for legislation to limit the amount that auto dealers may mark up the interest rates on consumer car loans. Attorneys general in several other states have announced that they are or will be taking similar action. The most common complaint is that dealers and finance companies are charging consumers more than the bank rate for their auto loans. In particular, the plaintiffs charge that the practice is directed primarily at minorities.