Auto Financing Company Settles CFPB Charges For "Wrongful Repossession" Practices

Nissan Motor Acceptance Corporation, a nonbank auto financing corporation that originates and services auto loans and leases, settled CFPB charges for engaging in "wrongful repossession" and servicing activities.

As described in the Consent Order, the CFPB alleged that the company had committed unfair and deceptive acts and practices, in violation of the Consumer Financial Protection Act of 2010, by (i) wrongfully repossessing vehicles, (ii) withholding personal property stored in the repossessed consumers' vehicles, (iii) depriving consumers of an option to significantly lower their fee when they made payments by phone, and (iv) misrepresenting consumers' bankruptcy rights.

In the Order, the company agreed to (i) provide between $750,000 and $1 million in cash redress to affected consumers and (ii) pay a civil money penalty of $4 million. Additionally, the company agreed to certain conduct and compliance requirements in order to prevent future violations.