Consumer Bureau Action Tracker

CFPB – Interstate Auto Group, Inc aka CarHop, and Universal Acceptance Corporation


State

Minnesota

target

Interstate Auto Group, Inc. aka. CarHop, and Universal Acceptance Corporation

Topics

Auto Loans, Enforcement, Credit Reporting

The CFPB “ordered CarHop to pay a $6.5 million penalty for providing inaccurate, damaging customer information to credit bureaus involving some 84,000 accounts.” The CFPB alleged that, for instance, CarHop would “report vehicles as repossessed when customers returned cars under the company’s 72-hour, full-refund return policy.” CarHop did not admit wrongdoing in agreeing to the settlement. They claimed it was to “move beyond the distraction of the investigation.”

  • In December 2015, the “Consumer Financial Protection Bureau said it ordered CarHop to pay a $6.5 million penalty for providing inaccurate, damaging customer information to credit bureaus involving some 84,000 accounts from about January 2009 until September 2013. The protection bureau said that one way CarHop mishandled accounts was to report vehicles as repossessed when customers returned cars under the company’s 72-hour, full-refund return policy. CarHop, which did not admit wrongdoing, agreed to the settlement ‘to move beyond the distraction of the investigation.'” [“Investment bank’s downgrade dents U.S. Steel shares; CarHop fined $6.5 million for inaccurate credit data”, Pittsburgh Post-Gazette, 12/18/15]

 

Status

Inactive or Resolved


2015-CFPB-0032 12/15/2015 12/17/2015

CFPB Orders CarHop to Pay $6.4 Million Penalty for Jeopardizing Consumers___ Credit
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/interstate-auto-group-carhop-universal-acceptance-corporation/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $6,500,000
  • 84,000

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