Loans and financial matters

Consumer finance loans are made for a range of consumer products such as autos and white electrical products such as refrigerators. In addition to the basic checks made on applications for credit cards lenders look to get security for larger-ticket items. For auto loans, for example, the bank will seek to get physical custody of the car ownership documents. This may be more of a symbolic act than an effective control.
The bank’s possession of these documents means that the only way the borrower can sell the asset is by reporting the loss of the documents to the relevant authorities and obtaining replacement documentation. In the event of default the borrower would be liable not just to a civil action but also risk facing criminal charges for fraud. A high proportion of other consumer finance loans is unsecured.