On 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 two Massachusetts auto dealerships, knowingly facilitated the sale of defective and inoperable vehicles. The Massachusetts AG said that the auto lender should have known about the defective and inoperable vehicles because it received consumer complaints about the automobiles’ poor conditions. Further, the settlement also alleges that the lender unlawfully required some customers to waive all recourse against the lender upon voluntary surrender of their vehicles.
Under the settlement, the auto lender is required to pay nearly $800,000 in restitution to Massachusetts consumers and undertake various policy changes.
The post Massachusetts AG Announces Settlement with Auto Lender for Alleged Unfair and Deceptive Acts and Practices appeared first on Consumer Finance Insights (CFI).