FTC puts the brakes on national subprime auto lender

Talk about a bumpy ride for consumers!

When you get vehicle financing through a dealership, you and the dealer enter into a contract: you buy a vehicle and agree to pay, over a period of time, the amount financed plus a finance charge. The dealer may hold onto the contract, but typically, it's sold to a bank, finance company or credit union. This “assignee” is responsible for the day-to-day management of your account, including collecting and crediting your monthly payments. But sometimes, things don't go exactly as they should.

Enter the FTC, which charged one assignee – Consumer Portfolio Services, Inc. – with doing everything but managing customer accounts properly.  

In fact, CPS will pay more than $5.5 million to settle Federal Trade Commission allegations that it overcharged consumers across the country, and used illegal tactics to collect delinquent amounts. CPS collected money it wasn’t owed, harassed customers and third parties, falsely threatened repossession, and told family, friends and employers about delinquent customer debts. CPS also failed to develop policies and procedures for responding to consumer disputes about information reported to credit reporting agencies and failed to reasonably investigate and respond to disputes.

In the end, CPS agreed to refund or adjust 128,000 accounts more than $3.5 million, and stop collections on an additional 35,000 accounts to settle the FTC’s charges that the company violated the FTC Act. CPS will pay another $2 million in civil penalties to settle FTC charges that it violated the Fair Debt Collection Practices Act, which protects consumers from abusive or harassing treatment by debt collectors, and the Furnisher Rule of the Fair Credit Reporting Act, which outlines a company’s responsibilities when reporting consumer information to a credit reporting agencies.

Every consumer has the right to be treated fairly when it comes to debt collection. If you think a company is breaking the law, tell it to the FTC. Your complaints help us stop rip-off artists, scammers and fraudsters. In fact, complaints people sent us about CPS helped the FTC’s investigation of the company. Your complaints matter at the FTC.

Tagged with: car, debt collection, loan
Blog Topics: 
Money & Credit

Comments

Please investing Santander Consumer USA for like tactics.

I have a huge priblem with Santander Bank, I havenot be able to resolved this problem and no one wants to check into. Who do I need to contact to dispute my final car payment. Thank you

Bravo FTC!

FTC...you did good! However, Seterus, Inc. is doing much worse to mortgage holders they are servicing and absolutely nothing is being done about it. Not one federal agency will do anything to protect the consumer. The CFPB claims their mission is only to improve the laws and they cannot do anything to aid individual consumers. All other agencies have refused to do anything either. We in Florida are really at their mercy...in the past year 20% of all foreclosures in the US have been in Florida. That is more than in the next 3 highest States combined. Can the FTC provide us with any assistance. This involves a lot more money than the auto scams and a lot more people.

Regional acceptance corp from Dallas Tx is a sub prime auto loan co that ripped me off from 2007 - 2013 on a new Susuki that was repo'd in 2013...Loan 16,000. I paid $321.00 per mon allthat time & the car was repo'd....I could not afford to fight w/atty now they claim a 7000+balance? I never borrowed against this

We are in process of a class action lawsuit. If interested email me

I have a ridiculously high interest rate with Regional Acceptance Corp. When I purchased the vehicle, I was earning 1200$/week as a full time registered nurse. I am now out of work after being brutally assaulted by a patient, and I am in the middle of a work comp case that has left me physically, emotionally and financially shattered. I've attempted to catch up on delinquent payments to save my car, but $380 goes to interest and $120 to principal. They will not work with me at all to save my car. Please please any assistance would be beyond appreciated. Thank you for your time

You may want to talk with a credit counselor. A credit counseling organization can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

This FTC article tells more about coping with debt.

Hello, I am very interested in a class action suit against regional acceptance. I had been paying on a Chevy spark since 2013, originally I applied as a co-signer only and they put me down as the primary. After 2.5 years of paying they say I still owe the same amount as the original sales price. The last 4 payments never even posted to my account and they repoed the car this week.

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