Delaware and Massachusetts AGs Settle with Auto Finance Company Over Alleged Unfair Lending

On April 8, the Delaware and Massachusetts Attorney Generals’ Offices (AGs) announced that they had entered into settlements with an auto loan finance company. The AGs alleged that the auto lender facilitated the origination of subprime auto loans that violated state consumer protection laws by funding and securitizing loans that consumers could not be reasonably expected to repay. Under the terms of the settlement, the auto loan finance company, which does not admit to any noncompliance with state law, will provide $550,000 to provide relief to Delaware consumers and $4.675 million to provide relief to Massachusetts consumers, as well as paying $825,000 in civil penalties to the commonwealth of Massachusetts.