CarHop, one of the nation’s biggest buy-here, pay-here dealership groups, and its affiliated finance company, Universal Acceptance Corp., agreed to pay a $6.4 million penalty to settle charges related to furnishing consumer credit information to credit bureaus, the Consumer Financial Protection Bureau said today.
“The CFPB’s investigation found that the companies inaccurately reported information for more than 84,000 accounts on a widespread and systemic basis,” the CFPB said in a press release. For instance, the CFPB said the companies in some cases did not accurately report whether repossessions were voluntary.
The penalty is a civil money penalty, which must be paid to the bureau.
Minnesota-based CarHop did not admit or deny the CFPB charges, in a consent order. “We have agreed to this settlement, under which we have not admitted to the CFPB’s allegations, to move beyond the distraction of the investigation started in May of 2012,” the company said on its website.
“Although the CFPB has made a number of allegations, it did not find that any consumer is entitled to any damages,” the company said.
CarHop has 50 retail locations in 15 states.
