BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healy has filed an enforcement action to stop Liquidation LLC from making and collecting on allegedly illegal, short-term auto loans to consumers in the state.
This action comes after Healey sued the company, alleging it targeted economically vulnerable consumers and gave them unlawful, high-interest loans on vehicles.
“We allege this company preyed upon financially strained consumers by offering quick cash in the form of illegal and predatory loans that the lender knew they could not pay back,” Healey said.
“For many families, a vehicle is their most valuable household asset and is often necessary to maintain their livelihood. This order prevents the company from continuing to make or collect on these loans, some with interest rates higher than 600 percent. Our office will continue to go after companies that use abusive practices to reap illegal profit from consumers in Massachusetts.”
According to Healey, Liquidation, which also does business as Auto Loans LLC, Car Loan LLC and Sovereign Lending Solutions LLC, additionally deceived consumers by not disclosing the final cost they would need to pay back was actually more than the amount they borrowed.
Healey seeks to void the company’s alleged unauthorized and illegal loans and discharge vehicle title liens. Her office will also seek injunctive relief and restitution for consumers.