Georgia – A federal court has mandated a defunct Georgia-based auto finance company, US Auto Sales Financing Services (USASF), to pay over $42 million in damages, restitution, and penalties for using fraudulent strategies violating the Consumer Financial Protection Act (CFPA), in what appears to be a historic ruling that marks a major victory for consumer rights. This ruling results from a string of legal actions and investigations resulting from the company’s misbehavior including overbilling and incorrect vehicle repossession.
Operating 39 dealerships spread throughout six states—Georgia, Florida, Tennessee, South Carolina, North Carolina, and Alabama—the corporation abruptly stopped operations in April 2023, leaving many customers and staff in chaos. Originally opened in Lawrenceville, Georgia, USASF positioned itself as a handy “buy here, pay here” dealership by offering in-house financing to its clients.
Filing the complaint in August 2023, the Consumer Financial Protection Bureau (CFPB) charged USASF of many criminal activity. These included improper repossession of cars, double invoicing for insurance premiums, the wrongful deployment of starter interrupt devices (SIDs) to disable borrowers’ vehicles, and neglect to return millions in refunds to its users…