Insurance Creates Usury Violations Featured

By Staff Writer June 11, 2019

A former auto dealer and associated lending and leasing companies have agreed to provide debt relief and credit repair to consumers relating to auto finance that allegedly violated Massachusetts law. 

Under the terms of the assurance of discontinuance, All-Star Auto Sales, Inc., Assured Auto Leasing LLC, and Assured Finance Inc., formerly headquartered in Marlborough, (collectively, the “All-Star companies”) have agreed to waive debt on certain defaulted loan and lease contracts. They will also allow certain consumers to keep their vehicles without making further payments, and provide credit repair to affected consumers.

Nearly 100 consumers are expected to receive loan discharges under the settlement, totaling approximately $500,000. 

The state AG’s office alleges that the All-Star companies originated and acquired vehicle loans and auto leases with finance charges that exceeded the state’s 21 percent usury cap and failed to properly disclose these finance charges on certain loans. The alleged usury violations occurred because the companies failed to disclose properly certain insurance premiums on the loans.

The alleged violations, in connection with the auto leases, are the result of charging consumers more than the value of the vehicle over the lease term and allowing the consumer to acquire the vehicle at the end of the lease with a small payment.

The assurance of discontinuance also bars these companies from making loans or leases in Massachusetts in the future.

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Last modified on Monday, 17 June 2019 13:34

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