Page 16 THE REVERE ADVOCATE – FRIDAY, SEPTEMBER 4, 2020 AG Healey sues major subprime auto lender O n August 31, Attorney General Maura Healey announced that her offi ce fi led a lawsuit against national auto lender Credit Acceptance Corporation (CAC) for allegedly making unfair and deceptive auto loans to thousands of Massachusetts consumers, providing investors with false or misleading information regarding auto securities they off ered and engaging in unfair debt collection practices. The complaint alleges that since 2013, CAC failed to inform investors that the company topped off the pools of loans that they packaged and securitized with higher-risk loans, despite claiming otherwise in disclosures to investors. The complaint also alleges that CAC made high-interest subprime auto loans to Massachusetts borrowA VIRTUAL WALK OF HOPE FOR ALS The Walk of Hope for ALS will be 19TH ANNUAL ALS Hope Walk of for VIRTUAL held virtually this year on SEPTEMBER 12TH SATURDAY 2020 11:00am We can’t walk together this year, but we can walk for ALS research! The Angel Fund for ALS Research 649 Main Street, Wakefield, MA 01880 Register today at www.theangelfund.org Call 781-245-7070 for more information Angel Fund for The RESEARCH Saugus Lynn Fells area, 2br 1.5ba single family home for sale by owner. This home was built for entertaining, 13,000 sqft lot, 1,344 sf Enjoy an in-ground pool and a huge patio, perfect for summer cookouts. Sliders lead directly to the pool from the dining rm. The pool table and poker rm with lots of built-in seating for all your party guests. Sprinkler 617-347-5177 for a showing (1% commission $639,900 ers that the company knew borrowers would be unable to repay, in violation of state law; while the company profi ted, borrowers experienced ruined credit and lost vehicles or down payments, and they were left with an average of approximately $9,000 of debt. Additionally, CAC borrowers were allegedly subject to hidden fi nance charges, which resulted in CAC loans exceeding the usury rate ceiling of 21 percent mandated by state law. “This company made unafFOR SALE by owner 15 Gilway, SAUGUS fordable and illegal loans to borrowers, causing them to fall into thousands of dollars of debt and even lose their vehicles,” said Healey. “We are taking a close look at this industry and we will not allow companies to profi t by violating our laws and exploiting consumers.” In its lawsuit, Healey’s office also alleges that the company took excessive and illegal measures to collect debt from defaulted borrowers, including sending faulty notices to borrowers with repossessed vehicles, harassing consumers with unlawfully repetitious collections calls, and overcharging consumers on their defi ciencies. The state is seeking relief for Massachusetts borrowers harmed by these alleged practices, as well as civil penalties and injunctive relief. This lawsuit is part of Healey’s review of securitization practices in the subprime auto market – an industry-wide investigation that remains ongoing. Last year Exeter Finance paid more than $5.5 million for its role in fi nancing unfair subprime auto loans. Previously, Healey’s offi ce secured $22 million from Santander for its role in fi nancing subprime auto loans for Massachusetts residents.
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