JD Byrider Enters Consent Judgment

By Staff Writer March 20, 2020

JD Byrider will cancel debts, pay $1.5 million to reduce car loan payments and provide restitution to thousands of consumers, and significantly change its practices to resolve allegations that it engaged in deceptive sales of defective vehicles and predatory lending, Massachusetts Attorney General Maura Healey announced recently. 

In a consent judgment entered in Suffolk Superior Court, JD Byrider agreed to provide significant monetary and injunctive relief to resolve a lawsuit filed in September 2017 that alleged the dealership took advantage of consumers and violated the Massachusetts consumer protection law. According to the complaint, JD Byrider routinely used aggressive and misleading advertising and sales techniques to sell consumers cars it should have known the consumers could not afford, putting the consumers at high risk of default and repossession.

The complaint alleged that JD Byrider sold its cars at more than twice their actual value, forced consumers into loans with high interest rates without regard for the consumers’ credit qualifications, and sold consumers expensive extended service contracts that stipulated they could only get their cars repaired by JD Byrider. The complaint alleged JD Byrider employed a faulty underwriting process through which it vastly underestimated consumers’ expenses to qualify them for loans they could not afford. Due to these practices, JD Byrider’s used car loans failed at excessive rates, causing substantial long-term economic harm to thousands of consumers.

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Last modified on Friday, 20 March 2020 14:16