Massachusetts AG Obtains Judgment Against Online Auto Title Lender for Illegal Loans

Goodwin
Contact

On May 25, 2017, Massachusetts Attorney General Maura Healey (“Massachusetts AG”) announced​ a final judgment and permanent injunction entered​ in Suffolk Superior Court against an unlicensed ​online auto title lender, permanently banning the company from operating in Massachusetts and voiding over 200 loans made by the company to Massachusetts borrowers. The judgment also prohibits the title lender from repossessing any of the vehicles connected to the loans, and orders the company to pay $1.135 million in civil penalties and nearly $200,000 in restitution.

The court found that the company made and collected on loans with undisclosed, unfair, and deceptive terms, including illegally high interest rates and abusive interest-only payment schedules. Some of the loans had interest rates ranging from 181 percent to 619 percent, in violation of Massachusetts usury laws.  The online lender was contacted by prospective customers either online or by phone.  According to the Massachusetts AG, the lender was not licensed to issue small loans in the Commonwealth of Massachusetts.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Goodwin | Attorney Advertising

Written by:

Goodwin
Contact
more
less

Goodwin on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.