May 10, 2022 — Consumer Resources

Interest up to 189% may be disguised by interest-free promotions through EasyPay Finance and TAB Bank

Before you agree to finance a costly car repair or tire purchase – or accept what appears to be a free 90-day payment plan – beware of fine print that could disguise costly loans at rates up to 189% APR. The company EasyPay Finance, working in tandem with TAB Bank in Utah, offers financing through auto repair and tire shops across the country, including at AAMCO, Big O Tires, Grease Monkey, JiffyLube, Meineke, Midas, and Precision Tune Auto Care, as well as at smaller locations. But these loans are not what they appear, and the high rates might even violate some state laws. Hundreds of complaints submitted by consumers to the Consumer Financial Protection Bureau, Better Business Bureau, and Ripoff Reports describe:

  • Deceptive promises of 90-day full interest rebates that are difficult to exercise.
  • Shocking interest rates up to 189%, with payments mostly going to interest.
  • Harm to credit reports. Payments may even be reported late for loans paid in full or for the wrong consumer. Consumers report receiving no responses to their disputes.
  • Debt collection harassment.

To avoid these deceptive and abusive practices:
  • Consider a credit card or personal loan, and avoid any loan above 36% APR. Credit cards have protection if you have a problem with a purchase, and a low-rate loan obtained separately from the auto repair shop may be better than an interest-free offer that never materializes.
  • Always check the terms of a loan before you sign or click, especially the interest rate, APR and any details of a promotional offer.
  • Get a copy of any agreement you sign. Make sure it is consistent with your understanding.

If you have taken out an EasyPay Finance/TAB Bank loan:

For more information, contact Stephen Rouzer ([email protected])