WASHINGTON (12/18/15)--One of the country’s biggest “buy-here, pay-here” auto dealers is the subject of an action taken by the Consumer Financial Protection Bureau (CFPB) Thursday, for allegedly providing damaging and inaccurate information to credit reporting agencies.
The CFPB’s consent order requires CarHop and its affiliates to pay a $6.465 million civil penalty.
Buy-here, pay-here dealers sell cars and originate and service the auto loan, and the Minnesota-based CarHop (also known as Interstate Auto Group) is one of the largest such dealers in the nation with roughly 50 locations in 15 states.
A CFPB investigation alleges that CarHop and Universal Acceptable Corp., the company that furnishes consumer account information to credit agencies on behalf of CarHop, violated the Fair Credit Reporting Act and Consumer Financial Protection Act by:
In addition to the civil money penalty, CarHop and Universal Acceptance Corp. must also cease misrepresentations about reporting good credit, correct inaccurate credit reporting information, provide credit reports to harmed consumers and implement an audit program.