Schuette Sues Auto Title Loan Company Liquidation, LLC to

Protect Michigan Residents from Illegal Title Loans

Contact: Andrea Bitely 517-373-8060
January 14, 2016

LANSING Michigan Attorney General Bill Schuette today filed a complaint and motion
requesting a Temporary Restraining Order and a Preliminary Injunction in Ingham County Circuit
Court against Liquidation, LLC and several associated alias companies demanding the company
stop collection activities on illegal title loans they provided to Michigan consumers. The court granted
the request for a temporary restraining order and set a hearing date of January 27, 2016 for the
preliminary injunction.
The suit 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.
This companys business model appears designed to take advantage of financially vulnerable
consumers with damaged credit histories, said Schuette. For many of these consumers, their
vehicle is likely their largest asset and only means of transportation, making these illegal loans
devastating to their pocket books and even to their ability to go to work.
This 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 loans were generally required to be repaid over 6 to 12 months, with a final
balloon payment exceeding the amount that the consumer actually borrowed.

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 Temporary Restraining Order
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 is
also calling 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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