CFPB Sues Auto-Loan Servicer for Alleged “Kill Switch” Activation

  • The CFPB filed a lawsuit against USASF Servicing, LLC for allegedly violating the Consumer Financial Protection Act of 2010 by engaging in illegal practices that harmed consumers with auto loans.
  • According to the complaint, the auto-loan servicer wrongfully activated starter interruption devices tens of thousands of times, including 7,500 erroneous disables and over 71,000 erroneous warnings. The devices, also known as “kill switches,” warn consumers with beeps or disable vehicles altogether when they are late with loan payments. USASF allegedly utilized the kill switches even when consumers were not in default or were in communication with USASF about upcoming payments.
  • USASF also allegedly failed to refund premiums to consumers, double-billed consumers, misapplied payments, and wrongfully repossessed vehicles.
  • The CFPB seeks a permanent injunction preventing future violations of the CFPA, a civil monetary penalty, and redress for consumers.