Household finance companies are a great way to get a loan for a lot of different purposes. They are also good at ensuring that you will make your payments on time, and they have the ability to give you a lower rate of interest than you might be able to find at other lenders.
Settlement with FTC
If you’ve ever been contacted by a debt collector, you may be eligible to receive compensation through a settlement with the Federal Trade Commission for household finance company violations. These companies, including Vivint Smart Homes Inc, Avant Financial Services, Direct Lending Source, and Passport Automotive Group, have been accused of misleading consumers about their credit reports and charging unauthorized fees.
The FTC’s settlements with these companies total up to $700 million in relief, and all will be returned to injured consumers.
The Vivint Smart Home Settlement includes a monetary judgment and injunctive provisions to stop unfair and deceptive business practices and implement an identity theft prevention program. It also requires Vivint to establish a Customer Service Task Force to verify accounts before turning them over to debt collectors.
The FTC’s settlement with Passport Automotive Group, a DC-based auto financing company, will require the company to change its business practices. The company allegedly charged higher fees to Black and Latino consumers, and it violated the Equal Credit Opportunity Act.
The LendingClub settlement will bar the company from making misleading claims about loan approval, costs, and other factors. It will also require the company to disclose upfront fees and total funds to loan applicants.
The Equifax Information Services LLC settlement will bar the company from using its prescreened consumer lists for any purpose, including debt relief. It will also prohibit it from selling its consumer lists to third parties.
