FTC Consent Orders Require ‘Clear and Conspicuous’ Disclosures

The Federal Trade Commission announced final consent orders with two car title lenders accused of misleading advertising, in cases with implications for other lenders and auto dealers.

The central accusation is that title lenders First American Title Lending of Georgia and Finance Select Inc., which does business as Fast Cash Title Pawn, failed to “clearly and conspicuously” disclose all relevant terms, such as finance charges after an introductory period ends, the FTC said on Wednesday.

The cases are part of an FTC crackdown in title lending and in auto retailing, with a heavy emphasis on the marketing of finance offers. According to the FTC, part of what has gotten lenders and dealers in trouble is taking print ads and simply reproducing them in online media. In some cases, that has served to shrink already barely legible disclosures to the point where they are truly illegible, the FTC said.

According to the consent orders, First American Title Lending of Georgia is based in Chattanooga, Tenn.; Finance Select Inc. is based in Carrollton, Ga. In the consent orders the companies neither admit nor deny the allegations in FTC complaints. The consent orders require the companies to make their advertising and marketing materials available for FTC inspection for five years. The consent orders also apply for 20 years, increasing the seriousness of any new violation.