Morrisey settles complaints with 2 Virginia auto lenders
CHARLES TOWN, W.Va. – West Virginia’s attorney general has settled complaints with two Virginia auto loan companies over their debt collection practices.
Patrick Morrisey said Wednesday the settlement was reached in Jefferson County Circuit Court with Fast Auto Loans Inc. and Virginia Auto Loans Inc.
Car title loans are banned in West Virginia.
The companies were accused of threatening prosecution in order to collect debts, charged excessive interest rates and failed to follow the law in seizing consumers’ vehicles.
Morrisey’s office says 218 cars were seized from West Virginia residents.
The companies agreed to close all accounts and erase debt owed by West Virginia consumers within 60 days, return any seized vehicles that have not yet been sold, and remove liens on vehicle titles.
They also agreed to pay $450,000 total to the state.