Harley-Davidson Financial Services to Refund $228,000 in SettlementThu, 12 Jun 2014
Harley-Davidson Financial Services agreed to reimburse more than 600 customers in Massachusetts a total of $228,000 to resolve a dispute over refunding enrollment fees on loans.
Customers receiving financing occasionally pay optional enrollment fees for additional special loan terms. If a customer pays off its financing loan ahead of schedule, they may be entitled to a pro-rated refund on those enrollment fees.
HDFS allegedly failed to properly provide the correct refunds on these enrollment fees which are typically issued to borrowers through the dealerships that arranged for the loans. The finance company will send out notices and payments to customers in early July. HDFS also agreed to pay $25,000 to cover the cost of the Commonwealth of Massachusetts’ investigation into the matter.
Going forward, HDFS agreed to take steps to ensure that other borrowers in Massachusetts receive the proper refunds in a timely manner.
“We are pleased that this finance company stepped forward to reimburse Massachusetts customers and promptly adopted changes to its procedures,” says Martha Coakley, Attorney General of Massachusetts. “We are continuing to review the practices of other motor vehicle finance companies operating in the Commonwealth to ensure compliance with contractual obligations.”
[Source: Attorney General of Massachusetts]
By Dennis Chung
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