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Wis. Auto Title Loans Inc. strikes deal in improper auto club membership case

GREEN BAY, WI (WTAQ) - A Wisconsin company that makes loans to those who put up their cars as collateral has agreed to pay three-million dollars to settle a state lawsuit. 

The state departments of Justice and Financial Institutions, and the Legal Aid Society of Milwaukee accused the Wisconsin Auto Title Loans company of adding extra costs to their loans, by enrolling borrowers into a motor club. 

The lawsuit said the firm never told customers about the enrollment -- or else they said it was mandatory. 

Under a settlement announced Monday, the firm will put $2.75 million into a restitution fund. 

The firm also vows to extinguish all finance charges accrued on open accounts -- and to release all existing liens issued from 1999-through-2010. 

Wisconsin Auto Title Loans has 22 locations throughout the state.