Years ago a company named Keller Finance, an "innovated alternative automotive finance company"
went viral by offering very attractive rates of return of between 14 to 18 percent. With your invested funds they would provide dead beat clientele with auto loans with an APR of up to 30%. These loans would be "fully collateralized" via liens against said motor vehicles. Thousands jumped in and millions were invested.
The vehicles pawned off on these folks were worn out old heaps priced at 10 times their actual value that may last 6 months, but carried a 3 year payment agreement. Shortly the old junkers would bite the dust and, naturally, payments against these rust buckets would cease. Repo-ing the vehicle would was a waste due to the fact the the cost of the repo ($400) was more than the old tub was worth.
The whole deal just turned out to be a scam with the company's top dogs raking off millions in salaries, bonuses, fees, expenses, etc. The ruse lasted a few years when the whole deal collapsed leaving investors holding the bag and many of the firm's upper rank in prison.
Moral: Be careful where you put your money. Scams always come wrapped up in very attractive packages.