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LAS VEGAS (AP) — Nevada has ordered auto title lender Title Max to stop issuing a loan extension option that the state says is illegal.
The state Department of Business and Industry announced Monday that the Nevada Financial Institutions Division had on Aug. 12 issued a cease and desist order against the nationwide company.
Title Max is also being fined $307,000 and must refund customers who had a Grace Period Payments Deferment Agreement title loan in effect after Dec. 18, 2014.
An administrative hearing found the program to be unlawful because its loan periods can run longer than what's allowed by state law.
The state said the repayment process would ultimately force customers to pay more money in interest than on their principal loan amount.
Company representatives couldn't immediately be reached for comment.
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