ED Magedson – Founder
LoBel Financial1150 N. Magnolia Ave. Anaheim, California United States of America
Lobel Financial Forced to Stop Harassing and Intimidating Borrowers 3/10/2009
Attorney General Edmund G. Brown Jr. forced Lobel Financial, a sub-prime auto lender, to stop its "illegal campaign of harassment and intimidation" against borrowers behind in their bills.
"This company charged its customers exorbitant interest rates for car loans and then waged an illegal campaign of harassment and intimidation when they couldn't pay up," Attorney General Brown said. "Now Lobel must stop its abusive tactics and comply with the law."
Lobel Financial is headquartered in Anaheim, Calif. but makes loans to customers in Los Angeles, San Diego, Sacramento, the Bay Area, the Central Valley, and other areas of the state.
Lobel provides financing to people with poor credit who purchase vehicles through used-car dealerships. The typical interest rate of their loans is between 21-23 percent. Lobel performed its own debt collection efforts when consumers failed to make the required payments.
In 2007, the California Attorney General's Office initiated an investigation into Lobel's debt collection practices. The investigation found that Lobel frequently violated California's Fair Debt Collection Act by:
- Calling its customers repeatedly and allowing the phone to ring continuously;
- Calling a customer's employer and family members; and
- Using a false name when calling.
Additionally, the company used more sophisticated "pre-texting" tactics to obtain confidential information of their customers.
For instance, Lobel deceived ATT Wireless into providing confidential telecommunications records of at least 190 California ATT customers.
Lobel also used a calling card scam to con consumers into providing their calling information. Lobel had a third-party vendor send the customer a "free" phone card; the company would then obtain information about the calls made by the customer using the calling card.
Hundreds of California consumers across the State were victimized by Lobel's constant harassment and illegal debt collection activities.
Contact: (916) 324-5500
This report was posted on Ripoff Report on 10/20/2009 10:58 AM and is a permanent record located here: http://www.ripoffreport.com/r/LoBel-Financial/Anaheim-California-92801/LoBel-Financial-Lobel-Repossession-harassing-intimidating-Attorney-General-Anaheim-Cali-512108. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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