Repo Buzz

Collateral Recovery Repossession News And Directory

Following SCUSA, GM Financial Pays Out $1.8M+ In Mass.

Massachusetts Attorney General Maura Healey said Monday that automobile financial company General Motors Financial Co. agreed to pay more than $1.8 million to resolve allegations that its business practices violated state consumer protection laws.

The assurance of discontinuance resolves allegations that Americredit Financial Services Inc., doing business as GM Financial, failed to pay legally-required interest after delays in providing refunds of guaranteed asset protection enrollment fees. Attorney General Healey’s office also alleges that GM Financial allegedly failed to provide sufficient information to certain consumers after repossessing their vehicles.

More than 2,000 Massachusetts residents may be eligible for restitution under the settlement.

Guaranteed asset protection is a product that is intended to limit the shortfall between the payment on an auto insurance claim and the amount a borrower owes on a car loan in the event a financed vehicle is totaled. Guaranteed asset protection is sold by car dealers as an add-on product and is often financed as part of an auto loan.

“We hope this settlement provides relief to the thousands of borrowers who have been affected by GM Financial’s alleged actions,” Attorney General Healey said in prepared remarks.


error: Content is protected !!