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On November 4, 2024, the Massachusetts Commissioner of Banks (the “Commissioner”) entered into a consent order with a licensed motor vehicle sales finance company (the “Company”) in relation to its retail installment contracts and their level of compliance with relevant Massachusetts and federal statutes. An examination carried out by the Commissioner regarding the Company and its servicer’s 2020-2021 activities allegedly found instances of substantial non-compliance with laws governing loan servicing and collateral repossession, as set forth in Massachusetts’ General Laws chapter 255B. As a part of the consent order, the Company agreed to ensure future compliance by implementing monitoring and audit programs as well as compliance management systems. The Company also agreed to cause its servicer to improve its document management systems and procedures, and engage third-party vendors to test its output accuracy, among other actions. The Company also agreed to pay an administrative penalty in the amount of $15,000. |
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