Beware Predatory Auto Repair Loans

Rates can go as high as 189%

Andy Spears
2 min readJun 27, 2022


Photo by C Joyful on Unsplash

Car repairs can be expensive and unavoidable. Yes, you want your car back on the road as soon as possible. But you may not have the money ready to pay for an expensive repair. Going without a car is often not an option.

Enter the auto repair loan. Many major car repair shops offer financing plans so you can pay for your repair over time and get your car back ASAP.

That’s all well and good unless you’re paying 100% or more in interest.

The National Consumer Law Center (NCLC) is out with a consumer warning on car repair loans.

Here are some of the complaints they’ve noted from consumers who use a financing company called EasyPay to finance their car repair loan:

  • Promises of 90-day full interest rebates that are difficult to claim.
  • Interest rates of up to 189%, with most of the payments just going toward interest.
  • Harm to credit reports — sometimes even after the loans are paid in full.
  • Harassment from debt collectors.

And here are some recommendations if you find yourself caught in the trap of an expensive EasyPay loan:

How does EasyPay get away with charging 189% for loans? They collaborate with predatory lender TAB bank to evade state rate caps.

The bottom line: Beware the predatory auto repair loan — ask questions and avoid EasyPay if you can.

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Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .