For consumers with bad credit, new motor loan rules are being instituted that would force banks to inform consumers when a bad credit rating is responsible for higher interest rates. Many in the motor loan industry have been accused of not giving consumers enough information when it comes to how much they will have to pay on their motor loans. The problem also highlights the fact that many motor loan companies are extremely selective in granting low interest rates.”Many creditors offer more favorable terms to consumers with better credit histories,” the two agencies acknowledged in a joint statement released last week.Travis Plunkett, the legislative director of the Consumer Federation of America, said it is a “Giant exception. That’s not particularly helpful,” he said. “Our fear is this will become just another generic notice that people get when they apply for credit that is not individualized enough to tell them they’ve gotten a less than favorable offer.”"While these agencies are providing some useful information to consumers, they’re not going as far as the law requires them to in telling consumers why they’ve been denied the most favorable offer of credit they can get,” he added.
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