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CFPB Makes Experian Pay for Misleading Consumers

Monday, 27 March 2017 17:17

The Consumer Financial Protection Bureau took action against Experian and its subsidiaries for deceiving consumers about the use of credit scores it sold to consumers.

Experian claimed the credit scores it marketed and provided to consumers were used by lenders to make credit decisions. In fact, lenders did not use Experian’s scores to make those decisions.

The CFPB ordered Experian to truthfully represent how its credit scores are used. Experian must also pay a civil penalty of $3 million.

Experian developed its own proprietary credit scoring model, referred to as the “PLUS Score,” which it applied to information in consumer credit files to generate a credit score it offered directly to consumers. The PLUS Score is an “educational” credit score and is not used by lenders for credit decisions.

From at least 2012 through 2014, Experian violated the Dodd-Frank Wall Street Reform and Consumer Protection Act by deceiving consumers about the use of the credit scores it sold. In its advertising, Experian falsely represented that the credit scores it marketed and provided to consumers were the same scores lenders used to make credit decisions. In fact, lenders did not use the scores Experian sold to consumers.

In some instances, there were significant differences between the PLUS Scores that Experian provided to consumers and the various credit scores lenders actually use. As a result, Experian’s credit scores in these instances presented an inaccurate picture of how lenders assessed consumer creditworthiness.

 

Credit Acceptance Earns Workplace Honors

Friday, 24 March 2017 17:04

For the fourth consecutive year, Credit Acceptance Corp. has been named as one of the 2017 Fortune 100 Best Companies to Work For.

The list recognizes companies that have exceptional workplace cultures. Credit Acceptance ranked No. 43 out of the best companies in America.

 

 

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State Suspends Dealer’s License

Tuesday, 14 March 2017 00:45

The Michigan Secretary of State suspended the license of a Muskegon used-vehicle dealer after consumer complaints led department investigators to the discovery of violations.
Several consumers who had purchased vehicles from Arizona Charlie’s Auto & Truck Sales in Muskegon complained that the dealership had not sought titles and registrations within the required 15 days of vehicle delivery. When an investigator from the department’s Office of Investigative Services visited the dealership, the owner could not provide required paperwork for several vehicles that had been sold.
A summary suspension was served on the dealer on March 7, at which time he surrendered his license.
Laws requiring detailed recordkeeping protect against the sale of stolen vehicles and parts, and ensure the vehicle buyer receives a clear and valid title to prove ownership.

State Says Defunct Dealership Failed to Secure Titles

Friday, 10 March 2017 17:09

The New York State Department of Motor Vehicles announced a consumer protection action on behalf of 48 customers against a Long Island used-car dealer.

In complaints submitted to DMV’s Division of Vehicle Safety, many consumers said they had purchased used cars from Valley Stream-based 1-800-Preowned but never received proper titles for the vehicles.  Since receiving the complaints, DMV has secured proper titles for 48 consumers from either the dealership or its floor planner with additional cases pending. 

Although the business has closed, DMV will seek a formal revocation of the facility’s business registration.  This will create a permanent record of the violations committed, which will be taken under consideration if any of the involved individuals apply to open another automotive business with DMV.

 In most cases, the dealer did not provide titles even though customers paid an additional $75 fee. 

For two consumers, 1-800-Preowned used the same vehicle to scam them both.

 The dealership failed to pay off an outstanding loan on the first customer’s trade-in vehicle, and then sold that same vehicle to a second consumer who was unaware that a lien against this vehicle remained outstanding.  

These complaints will be recommended for hearings before a DMV Administrative Law Judge, seeking restitution of about $45,000 for both the unpaid lien for the first customer and the total purchase price for the second customer.

 The dealer has been cooperative and has spent $6,000 for registration fees. The total amount of restitution recommended in hearings is about $65,000 to date.

 

 

Buy-Here, Pay-Here Operators Plead Guilty To Laundering Money

Buy-Here, Pay-Here Operators Plead Guilty To Laundering Money

The owners of a buy-here, pay-here operation in Louisiana recently pleaded guilty to laundering money for drug dealers.William Paul Boyter, Michael Paul Boyter and Anthony Reuben Riley, all of Shreveport,...

Auto Finance Tops $1 Trillion

Auto Finance Tops $1 Trillion

The total balance of open automotive loans climbed 11.1 percent in the first qua...

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