THE MALDEN ADVOCATE–Friday, September 10, 2021 Page 15 AG Healey secures $27M from subprime auto lender for thousands of consumers n the largest settlement of its kind, national subprime auto lender Credit Acceptance Corporation (CAC) will pay more than $27 million to settle a lawsuit brought by Attorney General Maura Healey over a variety of alleged unfair practices relating to the company’s role in the origination, collection and securitization of subprime auto loans. The settlement, which was I recently filed in Suffolk Superior Court, requires CAC to pay a total of $27.2 million, and provide debt relief and credit repair to thousands of Massachusetts borrowers. More than 3,000 borrowers across the state are expected to be eligible for settlement funds, including many residents of marginalized communities in Springfield, Boston, Worcester, and Brockton. The settlement also requires CAC to make changes to its loan handling practices. “Thousands of Massachusetts consumers, many of them firsttime car buyers, put their faith in CAC to help them with an auto loan, but were instead lured into high-cost loans, fell deeper in debt, and even lost their vehicles,” said Healey. “With this significant $27 million settlement, eligible Massachusetts drivers who have been suffering under the weight of a crushing car loan due to CAC’s deceptive practices will be able to receive relief and avoid new defaults. Predatory car loans, like predatory student loans or mortgages, hurt families and communities. Through our ongoing, extensive investigation into the subprime auto industry, we have a proven record of taking action and getting results for our residents who have been exploited by unscrupulous lenders.” The AG’s Office sued CAC in August 2020 over the company’s practices relating to the origination, collection, and securitization of subprime auto loans. Specifically, the lawsuit alleged that CAC made high-interest subprime auto loans that it knew or should have known many borrowers would be unable to repay. The AG’s lawsuit noted that while the company profited from these loans, borrowers experienced credit harm, and, in some instances, lost their vehicles or down payments. The complaint also alleged that some CAC borrowers were subject to hidden finance charges, which resulted in violations of the state’s 21 percent usury cap and that CAC engaged in unlawful collection practices. The AG’s lawsuit also contained allegations that CAC failed to inform investors that it topped off securitization loan pools with higher-risk loans. The AG’s action against CAC is part of her Office’s ongoing industry-wide review of securitization practices in the subprime auto loan market. Healey has been a national leader in holding subprime auto lenders accountable. In 2019, she reached a $5.5 million settlement with Exeter Finance for its alleged role in financing unfair subprime auto loans. Her office previously secured a similar settlement with Santander requiring the company to pay $22 million and provide more than $7 million in debt relief to Massachusetts borrowers. The AG’s Office also obtained $12.9 million under settlements with Westlake Financial Services, American Credit Acceptance, and Santander over allegations that the companies charged usurious interest rates on auto loans. Borrowers eligible for relief under today’s settlement will be contacted by the AG’s Office. Borrowers with questions about settlement eligibility should contact Healey’s Insurance and Financial Services Division at 617-963-2240. MassBike Hosts Bay State Bike Month this September • Bay State Bike Month is a statewide month-long celebration of bicycling • Bike-Friendly events across the state can be found at www. BayStateBikeMonth.org • The MassCommute Bicycle Challenge will be held September 19th-26th MassBike has joined forces with MassCommute to bring statewide bicycle programming and challenges to celebrate bicycling of all kinds during Bay State Bike Month. All month long, bicycling advocates across the state are celebrating “Rolling Together Again” by hosting bike-friendly events and participating in bicycle challenges. A list of events on the Bay State Bike Month calendar can be found on the Bay State Bike Month website, www. BayStateBikeMonth.org, and everyone is encouraged to add their own bikey events. The signature event is the MassCommute Bicycle Challenge (MCBC) happening the week of September 19th-26th, where bicyclists across the state are encouraged to track their bicycle trips for a chance to win daily prizes. Riders can join the challenge either through their employer's Transportation Management Association (TMA) or with MassBike’s “Love to Ride” platform. Whether you’re taking one trip, or heading out every day, you’ll be entered for a chance to win prizes, so visit this page to sign up for the 2021 MassCommute Bicycle Challenge to sign up: https://www.baystatebikemonth.org/2021_mcbc Bay State Bike Month is made possible by the generous support of our sponsors who are committed to helping make Massachusetts better for all bicyclists. • Platinum Sponsors: Biogen, Conine Family Foundation • Gold Sponsors: Harvard Transportation & Parking, Landry’s Bicycles, Puma • Silver Sponsors: Alexandria Real Estate, City Realty, WS Development • Bronze Sponsors: 128 Business Council, Assembly Connect, CiC, Cell Signalling Technology, Hire a Helper, Inspection Support Network, Kittelson & Associates, Porch, St. Elizabeth’s Medical Center, UMass Transportation Center, Valley Bike • Prize Sponsors: Axcelis, Nantucket Bike Basket Co., Priority Bicycles Learn more about Bay State Bike Month at www.BayStateBikeMonth.org and celebrate bicycling this September. Wreaths Across America Invites All Bay Staters and Bostonians to Join in National Flag Waving Effort Prior to September 11 This LIVE event will include stories from Gold Star Families, Veterans, First Responders and their families, whose service, courage, and sacrifice we honor. N ational nonprofit Wreaths Across America (WAA) urges all Americans to join together on Tuesday, September 7, 2021, in waving the American flag in remembrance of the 20th Anniversary of September 11th. The event will be hosted LIVE on its official Facebook page and broadcast over Wreaths Across America Radio. It will include Gold Star Families, whose loved ones answered the call to serve after 9/11, Veterans, and First Responders and their families. Now more than ever, it is so important that we come together as Americans to show support for those whose service, courage, and sacrifice, help keep America free. WAA gathers every Tuesday morning from 9-10 am ET to raise the American flag and say the Pledge of Allegiance from the Freeport Flag Ladies Monument in Jonesboro, Maine, near the ‘tip lands’ where the balsam is harvested to make veterans’ wreaths for placement on National Wreaths Across America Day each December. The monument, located on Route 1, was built by Wreaths Across America and Worcester Wreath Company in September 2019, after the Freeport Flag Ladies retired following 18 years of waving the American Flag in Freeport, Maine, each Tuesday since Sept. 11, 2001. “Now, more than ever, it is so critical for communities to come together to Remember all those who served, and Honor their service and their family’s service, especially those who volunteered during the War on Terror following the events of September 11, 2001,” said WAA Executive Director, Karen Worcester. “But more than anything, we must Teach our children about these men and women, and the courage and commitment it takes to be a part of the small number of Americans who protect all our freedoms. Please join me on Sept. 7th, as we wave the flag across America, like we do each Tuesday morning, and never forget that Freedom isn’t free, and it must be protected.” The flag-waving event will begin at 8:45 am ET and conclude at 10:05 am ET. In addition to the National Anthem, Pledge of Allegiance and sharing of stories, the event will include four moments of silence, as listed below. • At 8:46 am, on Tuesday, Sept. 11, 2001, five hijackers took control of American Airlines Flight 11 and flew it into the heart of New York City and the northern facade of the World Trade Center's North Tower (1 WTC). • At 9:03 am, five other hijackers flew United Airlines Flight 175 into the southern facade of the South Tower (2 WTC). • At 9:37 am, another five hijackers flew American Airlines flight 77 into the western facade of the Pentagon in Arlington County, Virginia. • At 10:03 am, four hijackers crashed United Airlines Flight 93 into a field in Stonycreek Township near Shanksville, Pennsylvania. Wreaths Across America is the nonprofit organization best known for placing veterans’ wreaths on the headstones of our nation’s fallen at Arlington National Cemetery. However, the organization, in total, placFLAG | SEE PAGE 14
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