FTC Sends Out Strong Warning Against Illegal Loan Packing
September 22, 2003
“Packing” is illegal regardless of whether a subprime lender does it on a consumer loan or a mortgage loan. The Federal Trade Commission sent out the anti-packing message in connection with a federal lawsuit against a Georgia subprime lender early this month. The lender, Stewart Finance, allegedly packed consumer loans with unnecessary insurance products and club memberships without informing borrowers.