Pennsylvania Announces Two Settlements Involving Auto Title Lending
On October 14, Pennsylvania AG announced a settlement with the owners of an auto title lending business. According to the settlement, the company made illegal loans to Pennsylvania borrowers carrying annual interest rates in excess of 200%. Under the terms of the settlement, owners must repay more than $1.5 million in illegal interest charges to consumers. The refunds are in addition to the $3.2 million debt forgiveness victims received under an October 2021 order. Owners are also prohibited from, among other things, knowingly participating, possessing or working for any business that extends credit to Pennsylvania residents, for seven years after they make their last payment under the settlement.
The Pennsylvania AG also announced a settlement with a Florida-based auto title lender for alleged violations of Pennsylvania usury laws and unfair and deceptive business practices. Under the terms of the settlement, the company must, among other things, cancel all outstanding loans issued to Pennsylvania consumers and reimburse Pennsylvania consumers for all fees and interest they have paid, which will result in nearly 200 consumers receiving reimbursements in the amount of $99,541.
Buckley LLP provides top-notch enforcement, litigation, compliance, regulatory and transactional services to early-stage and early-stage financial services institutions and fintech and technology companies, as well as to venture capital and private equity funds, investment companies and companies and individuals around the world.
Learn more at buckleyfirm.com and subscribe to our InfoBytes newsletter to get the latest news, events and developments affecting the financial services industry delivered to your inbox every week.