Massachusetts Alleges Michigan-Based Auto Lender in Lawsuit
BOSTON – A national subprime auto lender has made unfair and deceptive loans to thousands of Massachusetts residents, provided investors with false or misleading auto title information and engaged in unfair debt collection practices, alleged the state attorney general’s office in a lawsuit.
The lawsuit in Suffolk Superior Court alleges that Credit Acceptance Corp. did not notify investors that the company supplemented the loan pools it consolidated and securitized with higher risk loans, although it claimed otherwise in investor disclosures, the attorney general’s office alleged in a statement Monday.
The Southfield, Michigan-based company also made high-interest loans to Massachusetts borrowers it knew borrowers would be unable to repay, and has harassed borrowers with frequent collection calls in violation of the policy. state law, depending on the lawsuit.
Following: Detroit protesters file police ‘brutal violence’ complaint
Following: COVID lawsuits: Staff at nursing home where 19 people died said masks would scare patients
“This company has made unaffordable and illegal loans to borrowers, causing them to run into thousands of dollars in debt and even lose their vehicles,” Attorney General Maura Healey said in a statement. “We are taking a close look at this industry and we will not allow companies to profit by breaking our laws and exploiting consumers.”
The state is asking for borrower relief and civil penalties.
A voicemail search comment has been left for Credit Acceptance Corp.