Westlake, CFPB Settle Debt-Collection Charges for $48 Million

Subprime and near-prime auto lender Westlake Financial Services and its Wilshire Consumer Credit unit, which makes direct-to-consumer auto title loans, reached a $48.3 million consent order with the Consumer Financial Protection Bureau.

The lender settled charges that its debt collectors pressured borrowers with threats and employed phony caller ID numbers, the CFPB announced today.

“There’s no excuse for lying to your customers, and today’s action will provide millions of dollars in relief for borrowers caught up in Westlake and Wilshire’s deception,” CFPB Director Richard Cordray said in a written statement.

In the consent order, which was filed Wednesday, Westlake neither admitted nor denied the CFPB’s accusations.

The CFPB said debt collectors for Westlake and Wilshire altered caller ID information for outgoing calls to make it appear the calls were coming from repo agencies, from pizza delivery services, flower shops, or even family and friends. The lender was also responsible for debt collectors improperly disclosing information about borrowers.

In the consent order, Westlake agreed to pay $44.1 million in cash relief and balance reductions, plus a civil penalty of $4.25 million, the CFPB said.

For more content like this, check out the upcoming Auto Finance Summit, October 21-23 at Wynn Las Vegas. Visit www.AutoFinanceSummit.com for more information.