Like several other lenders, Westlake Financial Services is facing possible legal action by the Consumer Financial Protection Bureau, according to a June 12 securitization presale report from Standard & Poor’s Ratings Services. On May 19, the CFPB notified Westlake that the bureau was considering legal action “for certain alleged violations of federal consumer protection laws,” according to S&P.
“Westlake believes that to the extent that violations occurred, it has and will continue to address such incidents by way of employee disciplinary action, vendor terminations, and enhancements and modifications to internal policies and procedures. Westlake has provided a response to the CFPB proposing a meeting through counsel to discuss the parameters of a possible resolution,” according to the report.
Westlake declined to comment to Auto Finance News. Historically subprime, Los Angeles-based Westlake has branched into near-prime and prime lending, along with floorplan finance.
