FI showroom red and grey logo
MenuMENU
SearchSEARCH

Three FinCos Stung for $300K by NYDCA

Credit Acceptance, Clover Commercial and Westlake Financial have agreed to pay more than $300,000 to settle charges of predatory lending leveled by New York’s Department of Consumer Affairs on behalf of 50 Brooklyn car buyers.

by Staff
December 7, 2017
Three FinCos Stung for $300K by NYDCA

 

3 min to read


Charges of predatory lending against four Brooklyn used-car dealerships resulted in a $300,000 settlement to be paid by Credit Acceptance, Clover Commercial and Westlake Financial to New York’s Department of Consumer Affairs.Photo by Joe Hunt

NEW YORK — New York Department of Consumer Affairs (DCA) Commissioner Lorelei Salas today announced settlement agreements with three financing companies — Credit Acceptance Corp., Clover Commercial Corp. and Westlake Financial Services — that financed subprime auto loans as high as 24.9% through a group of Brooklyn used-car dealerships. In total, DCA secured $311,260.57 in restitution for 50 consumers, according to the agency’s announcement.

In May 2017, DCA charged the dealerships — USA1 Auto Sales Inc., Lenden Used Car Sales Inc., D&A Guaranteed Auto Sales Inc., and Linden Used Cars Inc. — and their owners, with deceptive and unlawful trade practices, including misleading consumers about the price of automobiles, concealing and misrepresenting the terms of sale and financing, and failing to inspect the automobiles.

Ad Loading...

“Thanks to DCA’s efforts, all three financing companies have agreed to pay restitution to consumers who were burdened with exorbitant interest rates on loans they received through these deceptive dealerships,” said DCA Commissioner Lorelei Salas. “The city will not tolerate predatory financing and sales practices. We will continue to hold dealerships and financing companies accountable in an effort to protect innocent New Yorkers from purchasing unusable cars and loans that place excessive financial burdens on themselves and their family members.”

Credit Acceptance, Clover and Westlake have agreed to:

  • Reimburse $311,260.57 to 50 consumers who were in high-interest loan agreements with the dealerships and whose contracts were assigned to the finance companies. Consumers who owe money will receive a credit to their account and any amount beyond what is owed will be paid via check. Consumers who no longer owe any money will also receive a check.

  • Provide restitution to eligible consumers who file new complaints about any of the four dealerships before March 11, 2018, allowing even more consumers the opportunity to benefit from the agreements.

  • Safeguard consumers by requesting that consumer reporting agencies delete any negative information that was reported in an effort to help repair the consumers’ damaged credit.

DCA currently licenses 666 used-car dealerships and claims to have received nearly 5,800 complaints from consumers about those stores over the past four years. The complaints range from instances of forgery on contracts to a dealership’s failure to provide material disclosures to consumers. As a result of the mediation of consumer complaints, investigations and settlements, DCA has secured more than $2.7 million in consumer restitution and assessed nearly $1.8 million in fines against used-car dealerships over the past three years.

In March, DCA announced charges against Major World, one of the largest used-car dealerships in the city with multiple locations in Queens, for engaging in deceptive financing and sales practices that resulted in predatory lending targeting immigrants and New Yorkers with low incomes.

Ad Loading...

In October, Mayor Bill de Blasio signed a package of legislation to combat predatory financing practices in the used-car industry. These new laws, which go into effect in February 2018, require used-car dealerships to post a “consumer bill of rights” and to disclose other information about the automobile price and financing terms, provide required notices to the consumer in the language used to negotiate the contract, and provide consumers with the option to cancel their contract within two business days of the sale.

More F&I

Photo of man's hand on laptop computer keyboard with blank screen
F&IMarch 16, 2026

There Is Always one More Product

Helping F&I customers understand complementary offerings is likely to lead to more sales, based on the success of a high-performing practitioner of the philosophy.

Read More →
REGISTER FOR EFI 2026
F&Iby Kate SpataforaMarch 16, 2026

EFI Conference Extends Early Bird Discount as Room Block Nears Capacity

Ethical F&I Manager's Conference will take place at The Cosmopolitan Las Vegas on April 13–15, 2026.

Read More →
Industryby StaffMarch 6, 2026

Explore the 12 Rules for an F&I Life at EFI

EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.

Read More →
Ad Loading...
F&IMarch 4, 2026

Creating Your Own Economy

In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.

Read More →
Industryby StaffMarch 2, 2026

Prove You Can Do F&I at EFI

‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.

Read More →
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Ad Loading...
Industryby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
F&IFebruary 13, 2026

Business Office Blueprint

Try following these 20 steps to greater success in the dealer F&I office this year.

Read More →
Industryby Lauren LawrenceFebruary 11, 2026

Insurance Shopping on the Rise

A TransUnion study found that relationship-driven sales models proved to be important, as consumers who used an agent had a lower shopping intensity than those going it alone.

Read More →
Ad Loading...
Industryby Hannah MitchellFebruary 4, 2026

Auto Insurance Cost Reprieve

2025 brought consumers relief after years of rate hikes, but 2026 could bring renewed policy pain, depending on how U.S. trade policy affects prices.

Read More →