Massachusetts AG Settles Claims Against Subprime Auto Lender for $5.56 Million

On February 8, 2022,​ the Massachusetts Attorney General’s Office (Massachusetts AG) announced that it entered into a settlement agreement with a lender concerning its subprime auto loan disclosure and debt collection practices.  The Massachusetts AG filed an assurance of discontinuance​ in Suffolk County Superior Court alleging that the lender failed to provide consumers with adequate disclosures regarding how deficiencies are calculated on auto loan balances after repossession.  The Massachusetts AG alleged that these inadequate disclosures violated state consumer protection laws.

Under the terms of the settlement, the lender agreed to pay $5.56 million for purposes of making payments to eligible borrowers, paying costs of implementation, and paying the Massachusetts AG’s costs of investigation​.