Kakalec & Schlanger, LLP Files Suit Against Carsbuck, Inc. and Westlake Financial Services, Deceptive Auto Financing Practices
Kakalec & Schlanger, LLP recently filed suit in U.S. District Court, Eastern District of New York, against auto dealer Carsbuck, Inc. and Westlake Financial Services on behalf of consumer Carlos Guerrero-Roa. The suit, brought under the Truth In Lending Act, the Equal Credit Opportunity Act, New York’s Motor Vehicle Retail Installment Sales Act and New York’s deceptive practices and usury statutes, alleges that the dealership refused to accept cash for the vehicle and then engaged in a variety of misconduct in order to inflate the price of the vehicle and the cost of financing. The lawsuit addresses the increasingly frequent dealership practice of having consumers provide their signature via use of a digital “pad”, and alleges that despite instructing the consumer to provide his signature in this manner, the dealership failed to provide the consumer with the relevant loan documents, including statutorily required disclosures regarding the cost of borrowing.
Kakalec & Schlanger represents plaintiff in Madden v. Midland Funding, LLC, et al., a case that addresses attempts by one of the nation’s largest debt collectors to collect interest in excess of New York’s criminal usury limit of 25% from approximately 50,000 New Yorkers. The case originally made news in 2015, when the Second Circuit found that the National Bank Act’s preemption of New York’s usury statutes did not apply. Click here to read the Second Circuit’s decision.
More recently, on February 27, 2017, the District Court issued a detailed Opinion & Order, holding that (1) New York’s criminal usury limit applied to defaulted debts and (2) choice of law clauses that select the law of a state without any usury limit violate New York’s fundamental public policy and are therefore unenforceable under New York law. The Court granted class certification and permitted Plaintiff’s claims under the Fair Debt Collection Practices Act and New York General Business Law 349 to proceed. Click here to read the District Court’s Opinion and Order regarding summary judgment and class certification.