Ads for auto loan modification scams are ALL over the Internet. These auto loan modification companies promise to negotiate with lenders to get customers lower car payments — for a upfront fee.

Consumer advocates and government regulators say most auto loan modifiers promising lower car payments will take your money and provide little or nothing in return. Consumer complaints about auto loan modification companies are increasing nationwide.

In June, Florida’s attorney general shut down Auto Relief Group, a south Florida auto loan modification company that has an F rating with Better Business Bureau. 

Basically, mortgage loan scammers have moved to the auto loan industry. Be careful. They are offering a debt settlement service that you can do yourself – if at all.

New laws that went into effect this year drove away most mortgage loan modification scams. The new laws require mortgage modifiers to get mortgage broker licenses and they can no longer charge upfront payments.

Unfortunately, auto loan modifiers don’t need to be licensed, certified or even trained. The FTC is considering a new rule that would prohibit upfront fees for debt settlement services. However, the proposed FTC action would not include auto loan modifications.