In recent years, auto loan servicer Westlake Financial Services has acquired the debts of thousands of consumers. The Los Angeles-based company boasts over $7 billion in assets, profiting from high-interest loans to buyers with bad credit. But their profitable business strategies have also amounted to numerous complaints and lawsuits. Consumers across the country allege Westlake is illegally repossessing their vehicles and destroying their credit.
One of the most notable lawsuits against Westlake Financial Services was filed by the Consumer Financial Protection Bureau (CFPB) in 2015. The CFPB accused the company of engaging in unfair and deceptive practices, including misleading borrowers about the terms of their loans and charging excessive fees. The lawsuit alleged that Westlake Financial Services targeted vulnerable consumers with subprime auto loans, taking advantage of their financial vulnerability.
Another lawsuit, brought by the Federal Trade Commission (FTC) in 2019, accused Westlake of illegally repossessing vehicles from consumers. The FTC alleged that the company used deceptive tactics to track down and seize cars, often without proper documentation or notice to the borrowers. This lawsuit highlighted serious concerns about the company’s repossession practices and its treatment of consumers.
Westlake Financial Services is quickly acquiring the debts of thousands of consumers across the US as car dealerships file for bankruptcy. The California-based company has purchased debts nationwide, including two recent acquisitions in the Southeast. The acquisitions of US Auto Sales and American Car Center have produced a slew of allegations online.
One story made headlines when a North Carolina customer of American Car Center had her vehicle repossessed by Westlake even after making all her payments on time. This customer alleges she never received word from Westlake to reroute her payments and continued to pay American Car Center. The payments went through, but Westlake still charged $1600 for her to take back her vehicle.
Many borrowers who had their debt transferred to Westlake overnight reported feeling misled and taken advantage of by the company. The allegations of excessive fees and deceptive practices raise questions about the transparency and fairness of Westlake Financial Services’ lending operations.
Losing a car can severely affect individuals and families, impacting their ability to work, commute, and fulfill other essential responsibilities. Contact our office if you believe Westlake Financial has wrongfully repossessed your vehicle or violated your consumer rights. Our consumer protection attorneys offer free consultations and contingency arrangements. This means you don’t pay unless we win. You can reach our intake staff at (919) 526-0450 or send a confidential message through the contact page.
While we can’t accept every potential case, we do our best to direct each person to the appropriate resources.