From our media partners at WOOD TV:
GRAND RAPIDS, Mich. (WOOD) — A loan scheme that charged people extraordinary interest rates has gotten the attention of law enforcement nationwide. On Wednesday, the case was heard in a Grand Rapids courtroom.
The charge against them is called usury. It has its origins in the book of Exodus. No one can remember the last time someone faced the charge in Kent County.
The defendants — the company Liquidation LLC, William McKibben III and Mark Weiner — were based in Florida.
Under the name AutoLoans, the Michigan Attorney General charges, the company issued loans to hundreds of people in Michigan and thousands nationwide. The borrower would sign over the title of the car to the loan company, which would then attach a GPS tracker to the vehicle and tow it away if the borrower fell behind.
The problem is that the loans had interest rates that often ranged from 190% to more than 400%. That is usury.
The Attorney General’s Office says the company has $20 million in outstanding loans nationwide.
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