Center for Responsible Lending
April4,2012
Car dealers often target consumers with poor or no credit for yo-yo scams, a new CRL report demonstrates. Yo-yo scams occur when a dealer leads a car buyer to believe financing is final, says CRL senior researcher Delvin Davis, author of the report, Deal or No Deal: How Yo-Yo Scams Rig the Game against Car Buyers. The dealer lures the consumer back to the dealership, claims the financing fell through, and then pressures the consumer to agree to a new loan at a higher interest rate. For the full report go to: http://rspnsb.li/yo-yo-scams.
The report also found that dealers involved in yo-yo scams frequently use coercive tactics to force...