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DriveTime Buy-Here-Pay-Here Dealership Chain Fined $8 Million

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Just a few days ago, the Consumer Financial Protection Bureau (CFPB) announced that it was fining DriveTime $8 million dollars for engaging in numerous illegal tactics.  DriveTime problems discovered by the federal agency were widespread and included the following:

  • Harassing its customers at work, even when DriveTime was told not to call at work.  The CFPB agency determined that DriveTime management encouraged its workers to make such calls.  In one case, DriveTime continued calling a customer at work 30 times after being requested not to call there.
  • Harassing its customers’ credit references.  DriveTime would call the references listed on their customers’ applications when the customer were late on their payments, even months after being told to stop making such calls.
  • Harassing the wrong person, because the databases used to locate their customers were often wrong.  Once again, they continued making such phone calls even after they were told they were calling the wrong person.
  • Proving false information regarding repossessions to credit reporting agencies, which could have a negative effect on the customers’ credit reports.
  • Failing to properly report disputed accounts, in violation of the Fair Credit Reporting Act (FCRA).  These violations included failing to correct credit reports after customers disputed their information, and falsely telling customers that their information had been corrected, when in fact it had not been corrected.
  • Failing to use reasonable procedures to ensure the accuracy of its customers’ credit information.

As a result, the CFPB required DriveTime to correct these practices, provide customers with a clear explanation of their rights as consumers, and to pay a fine of $8 million as a penalty.  Click here for a link to the CFPB announcement of their action against DriveTime.

DriveTime is a “Buy Here, Pay Here” dealership chain of over 120 dealerships spread out over 23 states. including Florida.  The local Orlando-area DriveTime dealerships are located in Sanford, Orlando (Colonial Drive), Orlando (West Colonial), Orlando (Orange Blossom Trail),and Kissimmee.  Its affiliated finance company is DT Acceptance Corporation.  DriveTime is the largest Buy-Here, Pay-Here dealership chain in the United States.  It typically targets “subprime” borrowers, many of whom are especially vulnerable in this economy.  At the end of last year, it owned more than 150,000 auto loans, but nearly half of them were delinquent.

You don’t have to put up with abuse or illegal tactics.  If you have experienced these or any other illegal, unfair, deceptive or abusive actions by DriveTime, or any other Buy-Here, Pay-Here dealership, or even a franchised dealership, we can provide you with a free consultation to discuss your legal options and remedies.  Call us today at 386-444-3032 or click here to send us an email.