The company, for example, expects a 72 percent collection rate on loans made in 2014 — the year<br />that a used 2009 Volkswagen Tiguan was repossessed from Nina Lysloff of Ypsilanti, Mich.<br />Ms. Lysloff could have bought a brand-new Volkswagen Tiguan for $22,149, according to Kelley Blue Book.<br />For millions of Americans like Ms. Harris who have shaky credit<br />and had to turn to subprime auto loans with high interest rates and hefty fees to buy a car, there is no getting out.<br />Ms. Harris’s predicament goes a long way toward explaining how lenders, working hand in hand with auto dealers,<br />have made billions of dollars extending high-interest loans to Americans on the financial margins.<br />The Car Was Repossessed, but the Debt Remains -<br />By JESSICA SILVER-GREENBERG and MICHAEL CORKERYJUNE 18, 2017<br />Her auto lender took her to court and won the right to seize a portion of her income to cover her debt.<br />Subprime lenders are willing to take a chance on these risky borrowers because when they default, the lenders can repossess their cars<br />and persuade judges in 46 states to give them the power to seize borrowers’ paychecks to cover the balance of the car loan.<br />The reason: Unable to recover the balance of the loans by repossessing<br />and reselling the cars, some subprime lenders are aggressively suing borrowers to collect what remains — even 13 years later.
