The court victory bars any further collection activities on illegal title loans they provided to Michigan consumers.
“This company took advantage of financially vulnerable drivers with damaged credit histories,” said Schuette. “For many of these consumers, their vehicle is likely their largest asset and only means of transportation. This victory keeps Michigan residents in their cars and ensures they can get to work to provide for their family."
The judgment not only puts a permanent halt to Defendants’ illegal lending and collection practices, it permits eligible consumers with Michigan titles burdened with a lien for loan repayment to have the lien removed by application to the Michigan Secretary of State.
Defendants are prohibited from accepting any title loan interest or other loan payments made by any Michigan consumer. Defendants are also banned from any collection activity, including collection calls or emails, vehicle repossession, or threats of repossession. These prohibitions extend and apply to any other company purporting to have a right to payment under a title loan issued by Defendants.
The Judgment also orders Defendants to pay an award of $2,208,698; which includes civil fines of $790,050 to the State for violations of Michigan debt collection law and transacting business without authority to do so, and $1,418,648 to be allocated for consumer restitution. However, because Liquidation LLC is an off-shore entity organized in the Cook Islands with no known physical business location in Michigan or elsewhere in the United States, collection of this award is uncertain.