FTC puts the brakes on national subprime auto lender

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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.

Hi Bridget, Last week I purchased a car locally with a 4000.00 cash down payment. They used Regional Acceptance for my lender. My credit score was around 526 so I knew i wasn't going to get 0% interest. The interest rate I did get was 18.9%. I was very uneasy and told them I needed to think it through. Thats when I was assured by the salesman, the F&I guy and the F%I manager that in 6 months of good payments I could refinance. I was told if I paid it off early that the payoff would be nowhere near the final price on my agreement. The F&I manager kept pointing to the contract saying "see, your only financing 12,xxx.xx" if you pay it off early. In short, the F&I manager called me yesterday telling me I needed to call Regional Acceptance for my welcome call (noone ever mentioned a welcome call). I jokingly said, nah, i think i will pass. He said you cant pass, if you don't call they wont pay us for the car. Well, something didn't seem right about the entire welcome call. This prompted me to do some research before calling. I wondered why they wouldnt contact me for this welcome call instead, im the customer. It seems they ruin your credit on purpose so you are unable to get out from under them. I haven't made that call yet, im almost afraid to after reading the hell all the others went through. If I dont call and they really dont pay the dealership for the car seems id be better off. Can you point me in any direction? Im so stressed out by reading what they have put others through, i dont know what to do.

You don't say if you already signed a financing contract.

If you signed a contract with a lender, and now you want to end the contract, you might talk to a lawyer or financial adviser. To find a lawyer, you could use this state-by-state list from the American Bar Association or visit this site from the State Bar Associations. You may need to talk with the dealer about what happens to your cash deposit and any vehicle you traded in.

This FTC has information about Vehicle Financing. It tells about what happens when you apply for financing at the dealership. You also have a choice to get a loan directly from a bank, finance company, or credit union. Once you have a contract to buy a vehicle, you use the loan from the direct lender to pay for the vehicle.

Direct lending may offer you:

  • Comparisons. You have the chance to shop around and ask several lenders directly about their credit terms before you agree to buy a specific vehicle.
  • Credit terms in advance. By getting financing before you buy the vehicle, you will know your rate and other terms when you are shopping.

Good morning Bridgette,

Thank you for responding so quickly. I appreciate all of the information you provided. I spoke with the finance manager from the local dealership yesterday 4/12/2016.
I informed him of my concerns with the out of state finance company they have me with and the legal issues being brought against them. I also expressed concern how he never explained how the interest rates were applied along with additional charges that went unspoken.
He began to get very irritated. I told him I didn't want to return the vehicle, i just wanted an opportunity to finance with a reputable company.
Here are my 3 choices he gave me 1. Make my welcome call and finance through Regional, 2. Bring him 12,183.00 and keep the vehicle or 3. Return the vehicle by close of business 4/13/16 and he will deduct mileage driven as well as a deduction for each day i have had it from my down payment. Seems reasonable but im not sure of how much that will be .
Although im happy I wont have to deal with Regional Acceptance, he refuses to apply my 4000.00 I already gave him to my new loan. In short, if i keep the vehicle he keeps my 4000.00 and I start all over. Am I being unfair to ask that my down payment be transferred to new loan with same vehicle?

I wanted to give you guys an update. I received a text from the finance manager stating he spoke with his GM and was told that I could pick up my entire deposit of 4000.00 upon return of vehicle. I picked up my check and once searching for a vehicle. Thank you for all the insight, I am so much more knowledgeable of the buying process because of you. It was truly heart breaking when i went to get the check seeing all the prospective buyers sitting there just as I was just 13 days prior. Is there anything that can be done about the dealerships that knowingly use these so called banks?

Thank you for letting us know how you resolved the situation. If you think a business has broken the law, or isn't giving you what it promised, you can file a complaint with the FTC. Go to ftc.gov/complaint and give as many details as you can. The information you provide goes into a database that law enforcement uses for investigations.

You have a lot of details here in your blog comments. You could take information directly from your blog comments and put that in a formal complaint. The blog comments don't go into the law enforcement database, so the best way to get word to law enforcement about problems you see is by going to ftc.gov/complaint.

Please help me....I'm in the same situation

MS SMALL, THEY ARE NOT FOLLOWING THE RULES IN THE SUIT AS IT IS. THEY ARE DOING THE SAME THINGS, AND NOTHING IS BEING DONE. IVE CALLED THEM, TRIED TO GET A REFUND, WITH LAWSUIT, HE SAID I WASNT A PART OF IT. DID IT JUST INVOLVE CERTAIN STATES OR WHAT? BUT THEY ARE STILL AT IT.
I TALKED TO VP, AND HE "AUDITED" MY ACCOUNT, AND ITS LEGIT HE SAYS, BUT AS A COURTESY HE SAID HE WAIVED MY FEES, AND EXTENSION PAYMENTS. NO HE DIDNT. WHY WONT SOMEONE STEP IN?????? WHERE DOES A PERSON GO, IF FTC WONT ENFORCE THEM, AND WITH ME, THE DEALERSHIP I PURCHASED FROM, WERE INDICTED ON MANY FELONIES INCLUDING CRIMINAL RACKETEERING. THEY ADMITTED WHAT THEY DID, AND WERE ORDERED TO REPAY. WHY DIDNT I GET PAID BACK. THEY TOTALLY SCREWED US. AND NO ONE WILL LISTEN. AND THERE ARE SO MANY MORE REPORTS AND COMPLAINTS ALL OVER THE INTERNET, ABOUT CPS, AND AGAIN, THEY ARE DOING EVERYTHING THEY WERE SUED FOR. WHATS IT GOING TO TAKE? EVERYTHING WE BOUGHT WAS A FRAUD. PLEASE HELP ME. AM I NOT GOOD ENOUGH TO HELP.. I DONT UNDERSTAND. BUT I WILL KEEP FIGHTING THIS UNTIL THE DAY I DIE, GOD KNOWS ILL HAVE THIS CAR UNTIL I GO TO MY GRAVE. WE HAVE HAD IT FOR 4 YEARS, STILL OWE OVER 20000 ON IT. YOU HAVE TO UNDERSTAND WHY I AM SO UPSET.

The FTC settled a case with Consumer Portfolio Services (CPS) in 2014. In 2014, the company refunded or adjusted consumers' accounts, and stopped collections on other accounts.

To report problems you have with a lender, go to FTC.gov/complaint. You can also contact your state Attorney General.

I want to be involved in the class action lawsuit. I got a loan through Regional acceptance Corp in Oct of 2011 . The loan was for 12000 four years later my loan about is still 12000. I was paying 406 a month on a 60 month term . How can I still owe this much? This is the worst company every. How can they take your money and put it to interest only is this even legal? I over paid for the car they need to be stopped

I currently have a loan with regional accept Corp is this suit still on going.

The blog post is about a case the FTC settled with Consumer Portfolio Services, Inc. in 2014.

If you have a complaint about a business, please report it to the FTC at FTC.gov/complaint. The information you give will go into a database that law enforcement uses for investigations.  Your complaints help law enforcement learn about problems in the marketplace.

We just took a car back to regional finance, Lancaster, sc they told us to then after they got it back they threatened me and my husband by saying they can take my home!I really feel cheated by them.

Thank you for sharing your experiences. Please file a complaint with the FTC.  Unfortunately, we cannot address complaints if they are submitted through the blog comments. Complaints help the FTC and other law enforcement agencies bring scam artists to justice. Watch this video to learn how to file a complaint with the FTC and why it matters.

I bought a car from Santander in 2014 I've been making payments but as of Thursday July 14th they came and repossessed my car I got no repossession notice or any paper work
from the repo man and I can't get any answers from this company I get hung up on or given the run-around what do I do now?

Please read the FTC article, Vehicle Repossession, for information about when and how your car can be repossessed.

I'm interested in joining the lawsuit... I'm from Ohio.

Hey, I'm in the same boat. I've been comparing because my "loan amount" seems to barely go down even though I'm paying on time and making extra payments. The loan matures next year and I don't see it going down any at all. Anyone EVER pay off a Regional Acceptance loan? I'm thinking that it's definitely time to take them on in a lawsuit.

Please send me information regarding class action lawsuit -- my car is financed with RAC, I was mislead by a finance manager at the dealership where I bought my used car.

I AM VERY INTERESTED IN THIS CLASS ACTION LAWSUIT AGAINST REGIONL ACCEPTANCE

Im interested in your lawsuit against them.

What is your email? I'm interested in joining this class action

They accepted payoff payment and still Repossed the car so then I wrote a letter sent it certified mail..Then I got a letter saying it was up for auction so I responded with another letter still asking for written explanations got a phone call from presidents office and car is on hold but still no written response and now they have it on my credit report as a involuntary repossession..Im a single Mom who is disabled and its about to be cold soon and I need reliable transportation

Is this class action still ongoing?

The Consumer Portfolio Services, Inc. case was settled in 2014.

I am very interested about this. A totally disabled male I know was ripped off by Them. He also has mental illness after a horrible work accident. xxx xxx xxxx I will be glad to discuss all details...

You can communicate with the FTC by filing a complaint at FTC.gov/complaint. The information you provide goes into a secure database that law enforcement uses for investigations. You can also contact state Attorney General’s office.

Is this class action lawsuit started? I think they are totally ripping us off as well. Loan was for 72 mths. Now they are saying that it was supposed to be paid off in May 2017 which is 78 mths. Also they say that the balance is over $7000 and our note is only $535. So, that is over 13 months in payments. I think my husband deferred 2 notes, but they are saying that we owe tons of fees and interest on those 2 deferrals. Not sure what I can do about it, but I definitely going to fight them.
Any help or advice would be great.
Thanks!

This blog is about a case the FTC settled with Consumer Portfolio Services Inc. If you aren't being treated fairly by a debt collector, you can file a complaint with Federal Trade Commission, your state Attorney General’s office and the Consumer Financial Protection Bureau.

If the business isn't based in your home state, you can also file a complaint with the Attorney General in the business' home state.

I have a car on a Regional Acceptance Loan , my wife keeps telling me that the way the papers was written up and that amount of interest I am paying is illegal. I'll be more than happy to let you look into my account and see if it qualifies.

What the info for this lawsuit? These people are trying too go after me for a loan I never committed too!

This blog about Consumer Portfolio Services, Inc. was written in 2014. The company was ordered to send refunds to people in 2014.

This FTC article tells about your rights when you deal with a debt collector.

If you're having trouble with this company now, report it to the FTC at FTC.gov/complaint. The information you give will go into a secure database that the FTC and other law enforcement agencies use for investigations. The comments you put here on the blog don't go into the law enforcement database.

Im interested in joining the law suite

I want to be involved I have paid 30,000 for a 17800 loan and they tell me I still have a balance of 10000$

Is this still open?

Having the same issue with Regional Acceptance on a $17,000 loan from 2013 my payment was $580 a month (23.4% interest). I called to Voluntary surrender due to job loss and they let the car sit here for a year before getting it. Now they are suing me for 10K since they let the vehicle go for just at $7,000 - and never informed me of where the sale would be, just the date and time. Wish I had thought to read reviews for them before I signed. Hope you get yours sorted out!

HEY, WE PURCHASED A VEHICLE, AND WAS FINANCED VIA CPS, AND THE DEALERSHIP ALSO WAS UNDER FEDERAL INDICTMENT, AND EVEN HAD AN FBI INFORMANT WATCHING THEM, THE SAME TIME FRAME WE PURCHASED VEHICLE. THE DEALERSHIP ADDED 20000 TO PURCHASE PRICE OF CAR, ON BOGUS DOCUMENTS, AND WE WERE NOT NOTIFIED OF THAT AND OUR CAR PAYMENT IS $590 A MONTH. CPS HAS NOT CHANGED THEIR PRACTICES, AND I EVEN LOOKED INTO CPS, AND THEY ADVERTISE TO PROSPECTIVE DEALERS ON HOW TO GET FINANCING, REGARDLESS OF WHAT OR HOW IT IS DONE, AND IT EXPLAINS WHOLE HEARTEDLY WHAT THEY ARE DOING. WE NEVER RECEIVED NOTICE OF LAW SUIT WITH FTC, AND ON OUR DOCUMENTS, WE NOTICED THEY CHANGED THE ORDER OF OUR PHONE NUMBERS. WE WERE SOLD BOGUS WARRANTYS. THIS DEALERSHIP WAS ALSO INVOLVED WITH A FTC SUIT, AND WE DID NOT GET NOTIFIED EITHER. CPS CLAIMS THEY DID NOT KNOW ABOUT WHAT THE DEALERSHIP HAD DONE, BUT WITH COMMON SENSE, OUR NISSAN WAS SOLD TO US ALMOST $40000. YOU CAN NOT TELL ME THAT THEY, MEANING CPS, DOES NOT KNOW WHAT THE DEALERHIPS ARE DOING. THEY STILL CONTINUE PRACTICES OF ILLEGAL COLLECTIONS, I HAVE TRIED ON NUMEROUS TIMES, CONTACTING THE AUTHORITIES WITH FTC WITH NO ANSWER. I CONTACTED CPS ABOUT REFUND, AND THEY SAID WE WERE NOT INCLUDED, BUT WE WERE. AND THE NEXT DAY AFTER I CONTACTED THE vp OF CPS, HE TOLD ME AS A SPECIAL FAVOR, HE WOULD TAKE FEES, AND CHARGES OFF. SO WHAT DOES THAT SAY. THAT DEALERSHIP, WAS CHARGED WITH FEDERAL RACKETEERING CHARGES AMONGST OTHERS, AND 3 PEOPLE DIED. THE WHISTLEBLOWER, HIS CAR SPONTANEOUSLY BLEW UP, AND LEAD DETECTIVE, DIED, AND CORONER "FELL DOWN STAIRS"

Now when will soldiers as mr dunn whom report all these scams and shysters get their cut? Wat occurs with all this money being payed cuz consumers gota eat.
How Much longer will Ocwen loan servicing group in Florida as a P.o.box gets indicted.a man they refunding thousands via moneygram stating everything ok.then turn around saying a entire house better pay thousands or be evicted and werein default ewhich makes it a commercial activity because their in another country.america you ain't shyt.

why am I not getting any response back. COnsumer portfolio Services are not following the guidelines set forth with the lawsuit in 2014, when we should have been apart of lawsuit, but were not, if cps tried to call or send out a notice, we wouldnt have received it. BC dealership changed our information. Can anyone help. ROBERT K is owner of vehicle. Everything, the add ons were bogus. Please, out of courtesy, some one please give me some sort of explanation.

The FTC settlement with CPS happened in 2014.

You can report a complaint about the dealership and about CPS with the FTC at FTC.gov/complaint. You can tell the FTC about your experience with the dealership and CPS. The information will go into a database that the FTC and other law enforcement agencies use for investigations. The FTC will not handle your personal case; it collects information for investigations and large cases.

You can contact your state Attorney General about the dealer and CPS. If you want to talk to a lawyer, you could use this state-by-state list from the American Bar Association or this site from the State Bar Associations to look for a lawyer in your area.

Here we go again...
Upon contacting CPS to verify if a refund or adjustment would be done on an account that had been charged off/closed. June the 6th was the last email sent to CPS in an attempt to verify change of address (There had been no contact with CPS since April of 2013 when I was taken to court). When not receiving an reply back with procedures on how to update address...I called CPS on June 9th explained my concerns for an account to receive a credit after it had already been taken to court, and told them my address had changed...guess what...yep, disconnected. So, I called back, spoke to a different person, explained we had somehow been disconnected. This person informs me the account would receive a $16 credit...So, I questioned the account receiving a credit since they had already taken me to court. She tells me that they will have to speak with their attorney and call me back...click, yep...they hung up/disconnected...without getting my updated information.
After going through rough times with CPS (now mind you, I still have the past letters of threats, the saved voicemail threats, such as pay up or else, and we will keep calling you back). Pulled my credit report...the payment history (now remember they took me to court in April 2013)...payment posted 4-2013(what), payment posted 5-2013(what again), charge off 6-2013(ok that would be court), payment posted 7-2013(how is this possible)...So here we go again...12 payments shy of having this loan completed...Original balance was $16,820, Ive paid over $20,500 and the charge off was for $7,048...This has been what seems like a never ending relationship with CPS.

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