Pennsylvania AG Halts Bank’s Allegedly Aggressive Auto Loan Debt Collection Practices

On August 19, 2020, the Pennsylvania Office of the Attorney General announced that it had entered into a voluntary compliance agreement with a regional bank to stop allegedly aggressive auto loan debt collection practices.

The agreement arose out of allegations made by the Pennsylvania AG that the bank engaged in unfair and manipulative practices, including filing debt collection actions in counties far from the county of purchase or residence, and sending post-judgment letters to borrowers threatening further legal action.

The terms of the agreement cancel any judgments the bank obtained since January 1, 2013 as a result of the practices described above. In addition, consumers who made payments towards the satisfaction of these judgments will receive restitution or a credit toward their judgment balance. Finally, the agreement requires the bank to fully comply with all state debt collection and consumer protection laws in the future, though it stops short of requiring the bank to admit to any prior wrongdoing or unlawful conduct.