BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healey announced March 27 that Source One Financial Corporation, a finance company providing subprime automobile loans, will pay $765,000 after allegations of routinely facilitating the sales of defective and inoperable cars.
According to Healey’s office, Source One violated the Massachusetts Consumer Protection Act when it facilitated the sale of these bad cars by two auto dealers, Auto Drive One and Buy-A-Ride.
“This company left hundreds of drivers with significant debt for cars they could not use,” Healey said in a statement. “We will go after schemes by auto dealers and finance companies that mislead consumers and will work to get people their money back.”
Under terms of the settlement, Source One will pay $200,000 in consumer restitution, waive more than $565,000 on loans that ended in vehicle repossession, and will help consumers repair their credit. Auto Drive One paid $50,000 in restitution last July for its role in the scheme.
Handling the case for Massachusetts were deputy division chief Shennan Kavanagh and assistant attorneys general Samantha Shusterman and Lisa Dyen, all of the Healey’s Consumer Protection Division.