All online are ads for auto loans with bad credit modification scams. Auto loan modification companies promise to negotiate with lenders to get customers lower car payments -- for a hefty upfront fee. But consumer advocates and government regulators explain that most auto loan modifiers promising lower car payments will take your money and provide little or nothing in return. Increasing throughout the nation are consumer complaints about auto loans with bad credit modification companies. In June, Florida's attorney general shut down Auto Relief Group, a south Florida business that has an F rating with Better Business Bureau.

Resource for this article: Don't fall for autoloans modification scams asking upfront fees by Personal Money Store

A cautionary tale is what we can auto loans for people with bad credit modification

Pitches by auto loan modification companies offering vehicle loan modification services claim they have lender connections and expertise to negotiate dramatically lower interest rates or extended payments. It was reported by WKYC in Cleveland that an unemployed student was looking for help with her $ 420.00 per month car payment when a television ad led her to Auto Relief Group. The auto loan for bad credit modifier promised to lower her 13 percent interest rate to 8 percent and extend the loan, which would result in a lower monthly car payment of $ 290.00. They also said they would work with her lender, Honda Financial Services.

Lower car payments – they never really happened

The unemployed student gave her bank account details to Auto Relief Group and agreed to let it take a one-time advance fee of $ 298 from her checking account. WKYC reports that when she didn't notice any reduction in her monthly car payment after a couple months, she contacted Honda directly and learned that Auto Relief Group had never contacted her auto lender. When she confronted Auto Relief Group, she was told the $ 298 fee was for an "options report" the company provided and that if she wanted them to contact her lender, it would cost an extra $ 100.

For what you are able to do yourself, scammers charge

Other consumer complaints about Auto Relief Group indicate the details within the options report is nothing more than what everyone can get from free by calling their auto lender, such as the amount of the loan, the current value of the vehicle, current rate of interest, balance, etc. The student in Cleveland also revealed that Auto Relief Group had made two additional $ 298 withdrawals from her account without her authorization.

Mortgage loan scammers migrate to auto loan financing

Many financial experts have said that auto loan modification scams are attracting some of the same scammers who modified mortgage loans until regulations shut them down. It was reported by SunSentinel.com that claims on auto-loan modifier sites and ads — "We can help you keep your car, truck, boat or RV!" "Stop repossession and make your payments affordable!" — are almost identical to the promises mortgage loan modification scams once made to property owners facing foreclosure. Many of those promises weren't kept and homeowners lost their homes and millions in upfront modification fees.

Auto loan modification companies are unregulated

New laws made sure that most mortgage loan modification scams were driven away. The new laws require mortgage modifiers to get mortgage broker licenses and they can no longer charge upfront payments. But auto loan modifiers do not need to be licensed, certified or even trained. The Federal Trade Commission is considering a new rule that would prohibit any kind of upfront fees for debt settlement services. However, the proposed FTC action would not consist of auto loan modifications. You are on your own. You've been warned.

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WKYC wkyc.com/news/local/news_article.aspx?storyid=138784&catid=3 Sun Sentinel sun-sentinel.com/fl-auto-loan-modification-20100707,0,6069557.story FTC ftc.gov/opa/2010/04/debttestimony.shtm