- Office of Attorney General Maura Healey
Media Contact for GM Financial to Pay More Than $1.8 Million Relating to Its Auto Loan Servicing Practices
BOSTON — GM Financial, an automobile financing company, has agreed to pay more than $1.8 million to resolve allegations that the company’s business practices violated Massachusetts state consumer protection laws, Attorney General Maura Healey announced today.
The assurance of discontinuance, filed today in Suffolk Superior Court, resolves allegations that Americredit Financial Services, Inc., d/b/a GM Financial, failed to pay legally-required interest after delays in providing refunds of Guaranteed Asset Protection (GAP) enrollment fees. The AG’s Office also alleges that GM Financial allegedly failed to provide sufficient information to certain consumers after repossessing their vehicles.
GAP is a product that is intended to limit the shortfall between the payment on an auto insurance claim and the amount a borrower owes on a car loan in the event a financed vehicle is totaled. GAP is sold by car dealers as an add-on product and is often financed as part of an auto loan.
“We alleged that GM Financial failed to provide borrowers with needed information, and failed to pay interest that legally belonged to those consumers,” said AG Healey. “We hope this settlement provides relief to the thousands of borrowers who have been affected by GM Financial's alleged actions.”
More than 2,000 Massachusetts residents across the state may be eligible for restitution under the settlement.
Consumers with questions about today’s settlement should contact AG Healey's Insurance and Financial Services hotline at 1-888-830-6277.
This case was handled by Assistant Attorney General Michael Sugar, Mathematician Burt Feinberg, and Legal Analyst Maggie Wallace of the Attorney General’s Insurance & Financial Services Division.