Subprime auto lender Exeter Finance has agreed to pay more than $6 million in two states for financing auto loans that the lender knew or should have known were unfair. Both states say the loans violated state law.
The settlements in Massachusetts and Delaware resulted from a joint investigation by the states' attorneys general offices, the offices said last week in separate statements.
In Massachusetts, Exeter agreed to pay $4.7 million to harmed borrowers and $825,000 to the state. In a separate 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 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.