I just heard of this, and my first thought is... this should be illegal! It's a credit card that uses your vehicle as collateral. Like a home equity loan except for your vehicle is the collateral. First they determine the value of your vehicle and then let you borrow up to $10,000. If you still owe money on the car you have to refinance the car through Yendo so they can put a lien on the car before they let you borrow money against the car. In my opinion this is predatory.
Like I tell my stepdaughter, modern slaves aren't in chains, they're in debt. I agree that this is a predatory practice. For people that don't know any better, they'll easily be entrapped by schemes like this.
Hmmm...I have 2 cars, wonder if I can get 2 cads?? I'm gonna be rich , steak for everyone (except Tim) at the next GTG!!
Kinda reminds me of when banks would loan you 120% of the value of your house maybe 15-20 years ago. What could possibly go wrong with that?
Mark Cuban just signed on with one of these companies...automotive equity loans or some crap. For me it's just another sign of how bad things are.
Yeah...I kinda forgot about those...they were everywhere there for a while...can't say I've seen many lately...am I blind, or have those sharks moved on to some other scam now?
After a little more thought, I remembered this was going on just before the 2008 housing collapse and recession.
Even my little town had one for a while. NH strengthened its banking laws so they were limited in the interest they could charge, the amount and the length the loan could be for. Soon after, the place in town shut down - although that may have been coincidence as I know some were prosecuted for predatory banking and collection practices so they ceased business. Many states either made them illegal, or revised their banking laws in the same manner as NH.
Yes that sounds ridiculous. I also despise the term negative equity financing throws around.. No you owe more on it than it’s worth. But buy a new vehicle will roll it into new loan so you have zero chance of getting ahead.
