Search Results: Auto Finance

California DFPI Reaches Agreement with Lender to Temporarily Halt Operations

​On December 14, 2021, the California Department of Financial Protection and Innovation (DPFI) announced that it entered what it described as a “novel” consent ​order with a Los Angeles-based automobile title loan lender prohibiting the company from marketing or servicing title loans under $10,000 with interest rates above 36 percent within the state of California for the next…

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DOJ Reaches $1.5 Million Settlement with Auto Lender Resolving Alleged SCRA Violation

On September 29, 2021, the Department of Justice (DOJ) announced that it reached a settlement with a California-based auto lender, resolving allegations that the lender violated the Servicemembers Civil Relief Act (SCRA). In a simultaneously-filed complaint filed in the United States District Court for the Central District of California, the DOJ…

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Mississippi Attorney General Reaches Settlement with Auto Lender to Resolve Claims of Deceptive Practices

​On July 21, 2021, the Mississippi Attorney General announced that it had reached a settlement with a national auto lender to resolve claims that the company placed borrowers into auto loans with a high probability of default.  The Attorney General also alleged that the auto lender engaged in aggressive collection practices in violation…

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NY DFS Enters Consent Orders with Two Indirect Auto Lenders for a Combined $625,000 in Civil Penalties

On June 29, 2021, the New York Department of Financial Services (DFS) announced it entered consent orders with two New York-based banks for allegedly violating New York’s fair lending laws in the course of providing auto loans. The banks will pay $275,000 and $350,000 in penalties to the state to resolve the allegations. DFS alleged that the…

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Massachusetts AG Announces Settlement with Auto Lender for Alleged Unfair and Deceptive Acts and Practices

O​n May 27, 2021, the Massachusetts Attorney General’s Office (AG) announced that it had reached a settlement with a subprime auto lender resolving alleged violations of the state’s unfair and deceptive acts and practices law. The Massachusetts AG alleged that the auto lender, in connection with its purchase of auto retail installment sales contracts from…

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Auto Lender Enters Into Consent Order with CFPB

​On May 21, 2021, the Consumer Financial Protection Bureau (CFPB) announced​ that it ​entered into a consent order​ and stipulation with​ a California-based company that services subprime auto loans originated by car dealers.​ According to the consent order and stipulation, the CFPB ​found that the company engaged in unfair acts or practices by charging interest on late payments related to loss damage waiver fees,…

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CFPB Enters Consent Order with Florida-Based Auto Lender Over Fee Disclosures

On November 20, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a Florida-based company that offers auto loans over the company’s alleged violations of the Consumer Financial Protection Act (CFPA). The consent order, entered against both the company and personally against the company’s…

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CFPB Settles with Auto Loan Servicer Over Allegedly Unfair Loss Damage Waiver Practices

On September 21, 2020, the Consumer Financial Protection Bureau (CFPB) entered into a consent order with an auto loan servicer to resolve allegations that the company charged customers for loss damage waiver coverage without actually providing it. According to the CFPB, this practice was unfair under the Consumer Financial Protection Act,…

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California Department of Business Oversight Investigates Auto Title Lender for Possible Usury

On September 3, 2020, the California Department of Business Oversight (“DBO”) announced it had initiated an investigation into an auto title lender for possible violations of California’s state usury limits, through its relationship with an out-of-state bank. In 2020, the Company allegedly stopped making state-licensed auto loans in California and instead partnered…

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Massachusetts AG Sues National Auto Lender for Unfair and Deceptive Practices

On August 31, 2020, Massachusetts Attorney General Maura Healy (“Massachusetts AG”) announced that she had filed suit in Massachusetts state court against a national auto lender for allegedly making unfair and deceptive loans to thousands of Massachusetts consumers since 2013 and engaging in unfair debt collection practices. According to the Massachusetts AG, the company…

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Vermont AG Settles with Auto Financing Company Regarding Unfair or Deceptive Practices

​On August 12, 2020, the Vermont Attorney General (Vermont AG) announced a settlement with an auto financing company related to alleged unfair or deceptive practices concerning the company’s subprime auto loans​. According to the Vermont AG’s complaint, filed on August 7, 2020, the company engaged in unfair and deceptive practices in violation of the Vermont Consumer Protection Act, 9…

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Massachusetts AG Enters Consent Judgment with Used Car Company Resolving Predatory Lending Lawsuit

On March 9, 2020, the Massachusetts attorney general’s office (Massachusetts AG) announced ​that it had entered into a consent judgment with a national used car company resolving allegations that the company’s local Massachusetts franchise engaged in predatory lending and deceptive sales of defective vehicles. According to the Massachusetts AG’s complaint​, filed in September 2017, the company…

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