Exeter Finance Hit With $6 Million Payout
In Massachusetts, Exeter agreed to pay $4.7 million to harmed borrowers and $825,000 to the state. In a separate cease and desist agreement in Delaware, Exeter agreed to pay $550,000 to affected customers and $50,000 to the state.
The office of Massachusetts Attorney General Maura Healey said Monday that Exeter facilitated auto loan originations that it “knew or should have known were unfair and in violation of the state Consumer Protection Law,” while the office of Delaware Attorney General Kathleen Jennings said the lender “knew or should have known” that the loans violated state laws.
An Exeter spokeswoman told Automotive News the company is “pleased to have resolved this matter.”
Both attorneys general said their offices will continue to investigate subprime lenders to protect borrowers in their states.
In its statement, the Massachusetts attorney general’s office also accused Exeter of violating debt collection regulations through mishandling servicing and collection of auto loans.