Search Results: Auto Finance

CFPB Fines Auto Lender $1.25 Million for Violations of Consent Order

​On April 26, 2017, the Consumer Finance Protection Bureau (CFPB) announced that it reached a consent order with an Ohio-based auto lender that allegedly violated a prior CFPB consent order by failing to properly return $1 million in refunds and credits to its customers.  According to the CFPB, the auto lender specializes in auto loans to servicemem​bers.  Under…

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Massachusetts and Delaware AGs Announce $25 Million in Settlements with Subprime Auto Lender

On March 29, 2017, the Massachusetts and Delaware Attorney Generals (“AGs”) announced settlements with a national bank, resolving allegations that the bank originated unfair and usurious automobile loans in violation of Massachusetts and Delaware consumer protection law.  According to the AGs, the bank originated subprime loans to more than 2,000 Massachusetts and Delaware…

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Massachusetts Commissioner of Banks Enters Into Consent Order with Motor Vehicle Sales Finance Company

On March 24, 2017, the Massachusetts Commissioner of Banks (“Commissioner”) entered into a consent order with a licensed motor vehicle sales finance company, agreeing to refrain from further violations of Massachusetts state law governing the conduct of motor vehicle sales financing.  The consent order came after the Commissioner examined the company and subsequently issued a…

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Arkansas AG Files Suit Against Auto Dealerships Over Deceptive Financing Practices

On December 17, 2016, the Arkansas Attorney General’s Office (“Arkansas AG”) announced that it had filed a lawsuit against affiliated auto dealerships for violations of the Arkansas Deceptive Trade Practices Act.  The Arkansas AG alleged that these auto dealerships would submit loan applications to third-party lenders, who would then deposit…

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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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