On September 1, 2021, the Massachusetts Attorney General (“Massachusetts AG”) announced that an auto lending company had agreed to pay more than $27 million to resolve claims that it engaged in unfair and deceptive auto loan practices. The Massachusetts AG alleged that the company made high interest auto loans to borrowers, despite the fact that the company knew or should have known that the borrowers would be unable to repay the loans, in violation of Massachusetts state law. The Massachusetts AG also alleged that the company failed to inform investors that it had a practice of adding higher-risk loans to securitized loan pools.
Under the terms of the settlement agreement, the auto loan company has agreed to pay $27.2 million in restitution and remediation to Massachusetts borrowers affected by these practices. The company will also provide debt relief and credit repair services to Massachusetts borrowers.
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