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Consumers Advised about Illegal Auto Title Loans Following Court Decision


Harrisburg, PA - Following a recent Commonwealth Court decision, the Department of Banking and Securities is providing advice to Pennsylvania consumers seeking relief from illegal loans made in the names of Sovereign Lending Solutions, Car Loan LLC, and Autoloans, LLC. These loans used car titles as collateral, with very high and illegal interest rates.

The Commonwealth Court’s order requires these companies to:

  • Stop making loans to Pennsylvania residents;
  • Stop collecting any payments of principal or interest on any existing loan from any Pennsylvania resident;
  • Stop repossessing cars from Pennsylvania residents;
  • Release all liens on file at the Pennsylvania Department of Transportation; and
  • Return all titles to Pennsylvania residents.

The department advises consumers that:

  • These companies cannot legally collect any money from Pennsylvania residents in interest, fines, penalties or principal;
  • These companies cannot repossess the cars of Pennsylvania residents whose titles were offered as loan collateral; and
  • Any GPS unit installed in Pennsylvania vehicles on behalf of these companies should be removed to help protect the vehicle from illegal repossession.

The department also asks Pennsylvania consumers to report any attempts made by these companies to repossess their cars. Consumers should maintain copies (electronic or paper) of any contact from these companies attempting to collect money from them.

Members of the public can contact the Department of Banking and Securities consumer hotline (1-800-PA-BANKS) to file a complaint or ask questions about financial products, transactions, or companies or go online:

Consumers can also learn more about Governor Wolf’s Consumer Financial Protection Initiative at and auto title and other “easy money” loans at:

On June 24, 2015, the department issued an order against these three companies: [PDF].

On January 22, 2016, the Commonwealth Court of Pennsylvania upheld the department’s action: [PDF].

MEDIA CONTACT: Ed Novak - 717-783-4721

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