Feds target dealer ads saying they'll pay off your loan

Five car dealers in four states have agreed to settlements with the Federal Trade Commission for ads the FTC says deceived consumers by promising to pay off their old car loans -- no matter what they owed.

The FTC says the balance usually was not paid at all, but rolled into the buyer's new car loan, according to the Associated Press report. Despite the ads claims, buyers still ended up owing the difference between their trade-in's loan balance and its value, the FTC says. One dealer actually required buyers later to pay the balance out of pocket, it says.

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