BOSTON, June 6 -- The Massachusetts Attorney General issued the following news release:
Harley-Davidson Financial Services, Inc. (HDFS) has agreed to pay $228,000 to more than 600 Massachusetts consumers in order to resolve concerns that it failed to pay proper refunds under the terms of its motorcycle finance agreements, Attorney General Martha Coakley announced today.
"We are pleased that this finance company stepped forward to reimburse Massachusetts customers and promptly adopted changes to its procedures," AG Coakley said. "We are continuing to review the practices of other motor vehicle finance companies operating in the Commonwealth to ensure compliance with contractual obligations."
According to the assurance of discontinuance, filed in Suffolk Superior Court, HDFS allegedly did not always provide correct refunds of finance contract enrollment fees. Borrowers typically pay these optional enrollment fees in exchange for additional special loan terms. When borrowers pay their loans off early, they are often entitled to obtain pro-rated refunds of these fees. The refunds are customarily remitted to borrowers through the auto dealership that helped arrange their loan. In some cases, when a dealership has gone out of business, borrowers can encounter difficulties obtaining these refunds.
Under the terms of the settlement, HDFS will reimburse $228,000 to more than 600 Massachusetts borrowers. Notices and payments will be mailed to eligible borrowers in early July. HDFS will also pay $25,000 to the Commonwealth for the cost of the investigation.
As part of this agreement, HDFS also agreed to follow policies and procedures that ensure that Massachusetts borrowers can obtain complete and timely refunds in the future. Consumers who have questions about the settlement should call the Attorney General's Insurance & Financial Services Division at 1-888-830-6277.
This matter was handled by Investigations Supervisor Arwen Thoman and Assistant Attorney General Glenn Kaplan of AG Coakley's Insurance & Financial Services Division.
TNS 30FurigayJof-140607-4759960 30FurigayJof