July 8, 2022

AG Healey Recovers Over $900,000 from Auto Title Lender

Lori Kalani, Bernard Nash

Cozen O'Connor

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Cozen O'Connor

Massachusetts AG Maura Healey reached a settlement with automobile title lender NH Title Group, Inc. to resolve allegations that it engaged in illegal auto lending practices in violation of Massachusetts consumer protection laws, the Small Dollar Loan Statute, and the AG’s Debt Collection Regulations.
According to the AG’s office, NH Title allegedly issued 2,745 automobile title loans to Massachusetts consumers for amounts under $5,000 with interest rates up to 300%, far in excess of the state’s legal cap of 12% per annum. As a result, many of these loans were unaffordable, and consumers had their vehicles repossessed. In addition, NH Title would pursue defaulting consumers with excessive telephone calls and emails to collect debts. In the event of repossession, consumers often did not receive the required pre-repossession notices, giving them 21 days to cure their default.
Under the terms of the Assurance of Discontinuance, NH Title will pay a penalty of $100,000, a suspended $100,000 penalty pending compliance with the AOD, and $400,000 in restitution to injured consumers. NH Title will also remove all outstanding liens, return all motor vehicle titles, forgive all loan balances and close accounts related to all Massachusetts consumers, for an amount totaling $412,770, and is permanently enjoined from engaging in consumer lending, servicing or debt collection in Massachusetts.

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