In June 2010, the
Auto Relief Group LLC scam was shut down by government regulators for making false claims and engaging in deceptive and unfair advertising. Now Auto Payment Solutions and the National Auto Loan Reduction Center are airing similar television commercials with claims they can also facilitate
loan modifications on car loans.
This is nothing more than the reincarnation of an old scam. Auto Payment Solutions and the National Auto Loan Reduction Center cannot do anything on your behalf that you cannot do on your own. Plus, you are better off if you negotiate your own arrangements with your lender rather than paying hundreds of dollars for them to send form letters on your behalf.
Auto Payment Solutions and the National Auto Loan Reduction Center are referral services that sell leads to other companies that claim to be able to negotiate loan modifications on car loans. These companies indeed are victimizing drivers who are falling behind on their car payments. As a desperate attempt to avoid
repossession, many consumers are putting their trust in these rogue companies in hopes that they can keep their cars. The trouble is, by sending Auto Payment Solutions or any affiliated company your hard earned cash instead of sending it to your lender, you are actually making matters worse.
After viewing the television commercial for this scam, I immediately noted the similarities to the
Auto Relief Group scam that made headlines earlier in 2010. The claims made in this scam are not only unrealistic, they are absolutely false. Auto Payment Solutions and the National Auto Loan Reduction Center claim to be able to:
- Lower your monthly payments by 50%
- Extend your payment terms
- Stop vehicle repossession
- Save your credit
The truth is, no company can do any of these things on a consistent basis. If you sign with that company, you will likely find out too late that they cannot fulfill their empty promises.
The costs of falling for one of these scams can be staggering. You might be out their fees, but if your car is repossessed, it could cost you an extra $500 to $1,000 on top of your late payments
if you can convince the lender to let you pick up where you left off. The problem is that once a lender has repossessed your vehicle, generally the only way to get it back is to pay the entire loan balance plus all costs associated with the repossession. Those costs can include the repo fee, storage fees, legal fees and late fees.
If you are having trouble with your car payments, then you need to consider one of the following realistic options that may provide a solution:
- Discuss your situation with your lender, preferably before you fall behind to see if they can provide some limited relief (refinance the car loan for a lower payment and longer term, special repayment arrangement to catch up on late payments).
- Complete a credit counseling session to develop a budget and see if other high-interest bills are interfering with your car payment. You might be eligible for lower payments and interest on certain unsecured debts.
- Get permission from your lender to sell the vehicle at a partial loss, with the remainder to be repaid as an unsecured loan.
- Speak with an attorney if the car payment is only part of a bigger disaster that is brewing.
The false claims made by Auto Payment Solutions and the National Auto Loan Reduction Center are unconscionable. Do yourself a favor and make sure that you are not one of the victims of the Auto Payment Solutions scam.
Poll:
Has Auto Payment Solutions helped you lower your car payment?
Visit the
Auto Payment Solutions forum for the latest updates on Auto Payment Solutions and the National Auto Loan Reduction Center.
Note: Auto Payment Solutions and the National Auto Loan Reduction Center are not related to Auto Payment Solution of Reno, NV according to Charles Johnson CEO/Owner of Auto Payment Solution. Johnson provided the following additional information to differentiate his company from those depicted above:
"The TV commercial is produced by a company by the name of spotlight media. The TV commercial is on their site and on their alias site autopaymentsolutions.tv. Auto Payment Solution of Reno NV has no affiliation with this company. The alias spotlight media uses on its TV commercial is Auto Payment Solutions. (note the "s" on the end of Solutions). We have no affiliation with the brand name Auto Payment Solutions. When I started Auto Payment Solution, spotlight media had not yet started running its commercial and I was unaware of them. It is true that we are an auto loan modification service company. We provide a service to people in danger of losing their vehicle to repossession. It is also true you can attempt this on your own. The loan processing team we contracted has the highest success rate in the country. It is true that not everyone can get their auto loan modified. We have loan specialists who pre-approve your file before we request any information from you and submitting it to processing. Like any service, we charge a fee for our service. These negotiations are stressful and time consuming. Many people do not have the time during business hours to make the necessary calls to negotiate with their lender. Others people simply do not want to deal with the stress involved confronting and negotiating modified terms for their loan. Auto Payment Solution will gather the necessary information from you and do the negotiation for you. There are many companies on the web who offer similar services."