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John C. Redding Quoted in Powersports Finance Article, “6 Lawsuits to Watch and Lessons Learned”

Powersports Finance

John C. Redding

John C. Redding was quoted on August 30, 2017 in a Powersports Finance article, “6 Lawsuits to Watch and Lessons Learned,” which discussed six recent lawsuits that lenders within the auto finance industry should review in preparation for increased regulatory attention. An auto-financing company’s settlement in Massachusetts and Delaware was one of the six lawsuits the article discussed and noted, “The company entered into a $25.9 million written agreement with the Attorneys General of Massachusetts and Delaware in March over allegations that the company funded loans consumers could not reasonably repay and knew about a network of dealers offering these loans, but did not stop it. Those allegations were from 2015, and the bank claims it has since changed policies.”

Redding stated, “While somewhat limited in scope, given that it only involves Massachusetts and Delaware, it presents an interesting and instructive view of ability to repay and also the need to take action when you learn that a dealer is allegedly engaged in wrongful acts.” He added, “Basically, the states settled a case on the underlying assumption that because the financial institution has knowledge of what was occurring but allegedly failed to take steps to prevent that conduct going forward, that the institution was therefore responsible.”

Click here to read the full article.