Search Results: Auto Finance

Colorado AG Secures Judgment Over Illegal Auto Title Loans

On November 30, 2016, the Colorado Attorney General’s Office announced that it had secured a judgment in Colorado state court against affiliated lenders who operated an illegal auto title loan scheme. The companies allegedly used fictitious names in extending credit services, and allegedly charged consumers usurious interest rates for personal…

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Kansas AG Settles With Auto Credit Company For Improperly Disclaiming Warranties

On August 19, 2016, the Kansas Attorney General announced a settlement with a Michigan-based auto credit company for “improperly disclaiming warranties in contracts with Kansas consumers in violation of the Kansas Consumer Protection Act.”  According to the company, the warranties were disclaimed inadvertently.  Under the terms of the settlement, each…

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DOJ Files Lawsuit Against Regional Credit Union Over Alleged SCRA Violations

On July 26, the Department of Justice (DOJ) announced that it filed a lawsuit against a regional credit union over alleged violations of the Servicemembers Civil Relief Act (SCRA). The SCRA prohibits lenders from repossessing servicemembers’ vehicles without a court order while servicemembers are on activity military duty. The DOJ alleged in…

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Michigan Attorney General Announces Default Judgment Against Automobile Title Loan Company Over Alleged Usurious Loans

On June 8, 2016, the Michigan Attorney General announced that a Michigan court entered a default judgment and permanent injunction against an automobile title loan company over alleged usurious loans that violated the Michigan Consumer Protection Act.  According to the Attorney General, the company charged usurious interest rates on automobile title loans, engaged…

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Massachusetts Attorney General Has Now Recovered More Than $12 Million In Connection With Its Subprime Auto Lending Investigation

This time last year, LLW reported on the Department of Justice going after subprime auto lenders, and more recently we have reported on the CFPB’s targeting of subprime auto lenders.  But Massachusetts has also gotten in on the regulatory action.  On March 16, 2016, the Massachusetts Attorney General’s Office (MAG) announced that American Credit…

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Massachusetts AG Announces Settlement With Auto Lender Over Alleged Usurious Interest Rates

​On March 16, 2016, the Massachusetts Attorney General’s Office announced that two financial services companies specializing in auto loans agreed to pay a total of $7.4 million in restitution to Massachusetts consumers over allegations the companies charged excessive interest rates on auto loans. According to the Massachusetts AG, the companies purchased loans from primary creditors…

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Massachusetts AG Announces Enforcement Action Against Online Auto Lender Over Alleged Illegal Loans

On March 18, 2016, the Massachusetts Attorney General announced that it obtained a preliminary injunction against an online auto lender over claims the company originated loans with illegal interest rates and fees in violation of Massachusetts usury laws. According to the Attorney General, the company offered online title loans to…

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CFPB Settles Discriminatory Lending Claims Against Auto Manufacturer for $21.9 Million

On February 2, 2016, the Consumer Financial Protection Bureau announced a settlement with an auto manufacturer resolving claims of alleged discrimination under the Equal Credit Opportunity Act.  Under the terms of the settlement, the auto manufacturer will pay “$21.9 million in restitution to thousands of African-American and Asian and Pacific Islander…

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House Republicans Level Another Blow at CFPB’s Auto-Lending Policies

Scrutiny of the CFPB’s auto-lending supervision and enforcement practices was renewed last week when Republicans on the U.S. House of Representatives Committee on Financial Services issued another scathing report criticizing the agency, this time focusing on its handling of the distribution of the Ally Financial auto-lending settlement funds.  Concurrently with…

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New York Attorney General Sues and Settles With Auto Dealerships Over Credit Repair Products

​On January 20, the New York Attorney General’s Office (Attorney General) announced that it had filed a complaint against several New York auto dealerships over allegations that the dealerships sold deceptive “after-sale” products to consumers.  The lawsuit alleges that the dealerships partnered with an independent credit repair company to charge 1,426 consumers…

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Auto Dealer-Lender and CFPB Settle Credit Reporting Allegations for $6.4 Million

On December 17, 2015, the CFPB announced a consent order and settlement with a Minnesota-based auto dealer and its affiliated financing company regarding their credit reporting practices in 15 states.  The consent order asserts that the companies violated the Fair Credit Reporting Act (FCRA) and the Consumer Financial Protection Act…

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Payday Lender and CFPB Settle Debt Collection Allegations for $10 Million

On December 16, 2015, the CFPB announced a consent order and settlement with a small-dollar lender concerning its debt collection practices in 15 states.  According to the consent order, the lender’s unlawful conduct allegedly included:  in-person collection visits at consumers’ homes and workplaces and phone calls to supervisors, landlords, and…

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House Report Targets CFPB Indirect Auto Lending Policies

On November 24, 2015, Republicans on the House Financial Services Committee released a report sharply criticizing the CFPB’s methodology for enforcing the Equal Credit Opportunity Act (ECOA) with regard to indirect automobile lending.  The report, entitled, “Unsafe at Any Bureaucracy: CFPB Junk Science and Indirect Auto Lending,” adds to the…

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FTC Reaches Settlement with Two Ohio Auto Dealers

FTC

​On November 24, the Federal Trade Commission (“FTC”) announced that it reached a settlement agreement with two Ohio auto dealers relating to allegations that the auto dealers violated Section 184 of the Consumer Leasing Act, 15 U.S.C. § 1667c, and Section 213.7 of Regulation M, 12 C.F.R. §​ 213.7.  Specifically, the FTC’s administrative ​complaint alleged that the auto dealers failed to disclose key…

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CFPB Publishes Rulemaking Agenda Including Proposed Rule Prohibiting Class Action Waivers

On November 20, 2015, the CFPB published​ its current rulemaking agenda. Under the Dodd-Frank Wall Street Reform Act, the CFPB drafts and implements new regulations governing certain consumer finance products and services. The CFPB publishes its regulatory agenda twice a year, which summarizes the proposed regulations (or “rules”) the Bureau is…

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Massachusetts AG Announces Auto Loan Company will Pay $5.4 Million to Settle Allegations it Charged Usurious Interest Rates

​On November 5, 2015 the Massachusetts Attorney General’s Office announced that a national auto loan company agreed to pay $5.4 million in restitution to Massachusetts consumers to settle allegations it charged excessive interest rates on automobile loans. According to the Massachusetts AG, the company purchased loans from primary creditors that contained…

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