The Indiana Attorney General’s office is on the watch for so-called ‘liar loans.’
The sub-prime auto loans are also being investigated in states like New York, Texas and Alabama.
Indiana Consumer Protection Deputy Director Terry Tolliver says the practice involves used car dealerships falsifying loan applications to help unqualified borrowers buy vehicles.
He says consumers need to be on guard.
"You need to make sure that when you go in there that those documents include all of the pertinent numbers and that there are no blanks and that before you sign it you agree to those numbers," says Tolliver. "Even before you go into the dealership it might be helpful just to check with your own local bank or your credit union, just so you know what you can get from your bank."
Tolliver says consumers need to make sure they personally complete loan applications, instead of letting a salesperson do it for them.
He says don’t the dotted line until you understand the paperwork.
