I have been assigned an audit of an auto title loan company, which is an institution that has not been examined before. Can anyone help me with ideas, audit programs, regulations that can be useful to accomplish this task? I have searched the internet but have not been able to find any useful information. The feedback given will be greatly appreciated!!!
Auto Title Loan companies must generally abide by the Truth In Lending Act. Car title lenders are usually classified differently than credit card companies or banks. Thus, they are generally not subject to the same federal regulations. This is typically a state-by-state issue. State regulations of these loans (which are often considered in the same category as payday loans) vary considerably and have been changing rapidly the last few years, so you have to look at the specific state in which the lender operates.