{"id":75494,"date":"2022-06-29T23:05:00","date_gmt":"2022-06-30T03:05:00","guid":{"rendered":"https:\/\/framinghamsource.com\/?p=75494"},"modified":"2022-07-03T13:44:42","modified_gmt":"2022-07-03T17:44:42","slug":"mass-attorney-general-motor-vehicle-title-lender-pays-900000-in-debt-relief-restitution-penalties","status":"publish","type":"post","link":"https:\/\/framinghamsource.com\/index.php\/2022\/06\/29\/mass-attorney-general-motor-vehicle-title-lender-pays-900000-in-debt-relief-restitution-penalties\/","title":{"rendered":"Mass Attorney General: Motor Vehicle Title Lender Pays $900,000 in Debt Relief, Restitution, & Penalties"},"content":{"rendered":"\n

In full transparency, the following press release was submitted to SOURCE media by the Massachusetts Attorney General’s office. (stock photo.)<\/em><\/p>\n\n\n\n

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BOSTON \u2013 A motor vehicle title lender has agreed to provide over $900,000 in debt relief, restitution, and penalties to resolve allegations that it engaged in illegal auto lending practices, including making consumer loans with exorbitant interest rates, pursuing debts with excessive phone calls and emails, and threatening repossession of cars, all in violation of Massachusetts consumer protection laws, Attorney General Maura Healey announced today., June 29.<\/p>\n\n\n\n

The assurance of discontinuance<\/a>, filed in Suffolk Superior Court, resolves allegations that the New Hampshire-based company NH Title Group, Inc. f\/k\/a Massachusetts Title Loan, Inc. and Capital Title Loan, allegedly charged Massachusetts borrowers usurious interest rates for small dollar automobile title loans and engaged in unlawful debt collection and automobile repossession practices. NH Title Group, Inc. ceased doing business in Massachusetts and New Hampshire in 2019. <\/p>\n\n\n\n

\u201cThis company targeted financially strapped consumers and engaged in harmful tactics to collect on illegal loans, including repossessing cars,\u201d said AG Healey. \u201cWe will continue to aggressively pursue companies that engage in illegal auto lending practices and hope that this sends a message that we will not tolerate lenders scamming our residents.\u201d\u00a0<\/p>\n\n\n\n

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The AG\u2019s Office began investigating NH Title Group, Inc. following several complaints from consumers. The investigation uncovered that the company issued approximately 2,745 automobile title loans to Massachusetts consumers which were less than $5,000 in principal and contained usurious interest rates of up to 300 percent. <\/p>\n\n\n\n

These exorbitant interest rates far exceeded the rate cap under Massachusetts\u2019 Small Dollar Loan Statute<\/a>, which applies to loans of $6,000 or less, and in addition to being illegal, rendered the title loans unaffordable for many consumers. More than 1,800 consumers defaulted and had their loans enter into collections, and hundreds of consumers ultimately lost their vehicles to repossession.\u00a0\u00a0<\/p>\n\n\n\n

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The investigation also revealed that in the event of a borrower default, NH Title Group, Inc. would frequently pursue consumers through excessive telephone calls and emails to collect debts, in violation of the Attorney General\u2019s Debt Collection Regulations<\/a>. In addition, because the title loans already violated the state\u2019s Small Dollar Loan statute and as such were considered void, any attempt to collect any debt from them is illegal.   <\/p>\n\n\n\n

It was also discovered that in some instances, NH Title Group, Inc. failed to send consumers pre-repossession notices as required by state law. Such notices provide borrowers an opportunity to remedy their defaults, or otherwise catch up on missed payments within 21 days, in order to avoid repossession.  <\/p>\n\n\n\n

Under the terms of the settlement, NH Title Group, Inc. will pay $500,000 in restitution and penalties and has forgiven over $400,000 in outstanding loan balances and post-repossession deficiency obligations. It has removed all liens on motor vehicles that served at its loans\u2019 collateral. The company will also be permanently barred from engaging in any consumer lending, servicing or debt collection business in Massachusetts. \u00a0<\/p>\n\n\n\n

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The AG\u2019s Office offers the following tips for people considering taking out a loan: 
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