Schuette Stops Collections by High Interest Auto Title Loan Company

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FOR IMMEDIATE RELEASE
January 27, 2016

Schuette Stops Collections by High Interest Auto Title Loan

Company
Injunction further protects Michigan residents from illegal title loans issued by
Liquidation, LLC
LANSING Michigan Attorney General Bill Schuette today was granted a Preliminary
Injunction against Liquidation, LLC and several associated alias companies, stopping them from
any collection activity on illegal title loans they provided to Michigan consumers.
The Ingham County Circuit Courts Preliminary Injunction replaces the Temporary Restraining
Order issued on January 14, 2016. If the company and officials continue to ignore the lawsuit,
Schuette will ask the court for a default judgment. If a default judgement is entered, this
effectively cancels the loans and allows affected consumers to clear their titles.
Im pleased this case is moving swiftly and we look forward to working with the Secretary of
State and the court to help consumers burdened with this debt to clear their vehicle titles, noted
Schuette.

The lawsuit filed in mid-January alleges that Liquidation, LLC provides unlawful vehicle title
loans. They are not authorized to do business in Michigan as a pawnbroker or even a Limited
Liability Company and they have burdened more than 440 Michigan consumers with exorbitant
triple-digit interest rates ranging from 161.95% to 251.03%. Through an online application
process, Michigan consumers arranged for the loans for amounts ranging from $1,000 to $5,000,
and secured the loans with a vehicle they owned outright.
Liquidation, LLC required possession of the vehicle title and the installation of a GPS tracking
device on the borrowers vehicle before providing the loan. Consumers were generally not
provided with a copy of the loan documents, and in the few cases they were, the documents were
not provided until after Liquidation, LLC had the borrowers vehicle title.
The Attorney General worked in conjunction with the Secretary of State to determine how many
Michigan titles were affected by this business, and SOS will play an integral part in the case
moving forward.
Ruth Johnson and her team share the same dedication to Michigans citizens as the Department
of Attorney General and I thank them for their assistance on this issue, Schuette said.
Todays action follows on the heels of Schuettes December Cease and Desist Order to
Liquidation, LLC under the Regulation of Collection Practices Act and a Notice of Intended
Action under the Consumer Protection Act. The December Cease and Desist Order was shared
with over 1,000 Michigan businesses that might unknowingly assist Liquidation, LLC with
repossession of vehicles or other related services.
Liquidation, LLC associated company aliases include:

Vehicle Liquidation, LLC

Autoloans, LLC
Auto Loans, LLC
Car Loan, LLC
Sovereign Lending Solutions, LLC
Sovereign Lending, LLC
Management Solutions, LLC
Loan Servicing Solutions, LLC
Consumers with loans through Liquidation, LLC or one of the alias company names who had
their vehicle repossessed on or after December 7, 2015, or who still have their vehicle, should
contact the Attorney Generals office to make sure we have a record of your situation.
Consumers for whom we do not already have a written complaint will be asked to file one.

Documents of interest:

Online Consumer Complaint Form

Printable Consumer Complaint Form
Liquidation, LLC Order to Cease and Desist
Liquidation, LLC Preliminary Injunction
Liquidation, LLC Complaint for Ex Parte TRO, and for Preliminary and Permanent Injunctive
Relief
Liquidation, LLC Motion for a Temporary Restraining Order
Liquidation, LLC Brief in Support of Motion for a TRO
Auto Title Loans Consumer Alert
To help educate consumers on the many perils associated with vehicle title loans, Schuette again
calls attention to his Auto Title Loans consumer alert. The alert explains that vehicle title loans
involving the lender taking physical possession of the borrowers vehicle title are risky and not
permitted by Michigans lending laws. The alert also covers the various interest rates that may
be charged on Michigan consumer loans and when it is appropriate to report a company to the
Attorney Generals Consumer Protection Division.
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