BUFFALO, N.Y. -

New York’s attorney general recently announced 10 repossession agencies will not repossess vehicles at the request of title-loan companies that Empire State officials believe might be booking illegal contracts with consumers.

The agencies that were party to the agreement with attorney general Eric Schneiderman included:

—Advanced Recovery of New York (Rochester, N.Y.)

—ALSCO of Buffalo (Buffalo, N.Y.)

—Buffalo Auto Recovery Service (Buffalo, N.Y.)

—Del Mar Recovery Solutions (Carlsbad, Calif.)

—Empire Auto Recovery (Plainview, N.Y.)

—Minnesota Repossessors (Maple Grove, Minn.)

—Priority Recovery (New Windsor, N.Y.)

—Tri-City Auto Recovery and TCAR Recovery & Remarketing Services (Burnt Hills, N.Y.)

—Victory Recovery Services (Buford, Ga.)

—Loss Prevention Services (Grandville, Mich.)

“I applaud these companies for agreeing to stop obeying orders from predatory title-loan companies that take advantage of unsuspecting New Yorkers,” Schneiderman said. “Any other business that repossesses the vehicles of New Yorkers based on illegal title loans should recognize that my office will not tolerate this kind of behavior.”

New York has strict laws on interest rates that may be charged by unlicensed lenders that are not or federally or state chartered. Unlicensed lenders may not charge an interest rate of more than 16 percent.

In an attempt to skirt this law, Schneiderman contends title-loan companies do not set up shop in New York but peddle their products over the Internet, and consumers apply online. These companies do not issue loans based on the credit worthiness of consumers or their ability to pay it back, but rather on the value of the consumer’s vehicle.

“To make the loan seem affordable, title loan companies often require that consumers pay only the interest on a monthly basis,” said Schneiderman, who believes interest rates can vary from 100 percent to more than 700 percent.

“At the end of the loan, consumers are stunned to learn that they must then make a balloon payment for an amount that often exceeds the entire principal of the loan. If the consumer is unable to make the balloon payment, the title loan company repossesses and sells the consumer’s motor vehicle,” he went on to say.