New York State's crackdown on online lenders has ensnared a Chicago company that makes loans backed by a borrower's car.

State Attorney General Eric Schneiderman fined the auto-title lender Manor Resources more than $33,000 Monday for violating the New York's interest-rate cap. Schneiderman also ordered the lender to forgive the balance of all its New York loans, a sum estimated at $28,000, according to a spokeswoman for the attorney general's office.

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