Delawareans who borrowed from one Texas-based auto loan financer accused of wrongdoing are set to be reimbursed.
An investigation by the Delaware Department of Justice Fraud Division found the auto finance company and Delaware LLC, Exeter Finance, knowingly facilitated subprime auto loans that were in violation of the state’s consumer fraud law.
In its Cease and Desist agreement with the state, Exeter admits no wrongdoing but will compensate hundreds of qualifying consumers to the tune of $550,000.
Exeter also agrees to waive deficiencies on some subprime loans and ask major credit bureaus to clear any resulting harm done to consumer credit reports.
This settlement is part of Attorney General Kathy Jennings’s ongoing campaign to scrutinize securitization practices in Delaware’s subprime auto loan industry.
The state DOJ recently secured more than $2.8 million from another auto financier - Santander.
The agency says a trustee will be appointed to locate and pay restitution to Delawareans who financed vehicles through Exeter.