The New York City Department of Consumer Affairs said it took a new approach to "predatory" lending practices when it pursued claims against three subprime auto lenders that bought retail installment sales contracts from four used-car dealerships in Brooklyn that the department said misled consumers. The department took the tack even though it did not accuse the lenders of wrongdoing.
The Department of Consumers Affairs said on Nov. 29 it had reached consent orders with three auto finance companies totaling $300,000 in restitution on behalf of 50 consumers. The companies are Credit Acceptance Corp., of suburban Detroit; Clover Commercial Corp., of Bellmore, N.Y.; and Westlake Financial Services, of Los Angeles.
The department "alleges no violations" against the lenders, according to the separate consent orders signed by the lenders. In addition, the lenders admit no liability in the consent orders.