3rd Generation, Inc. d/b/a California Auto Finance
On May 21, 2021, the Bureau issued a consent order against 3rd Generation, Inc., a California corporation doing business as California Auto Finance (California Auto). California Auto services subprime auto loans that were originated by car dealers and later assigned to California Auto. The Bureau found that, between 2016 and 2021, California Auto charged about 5,800 customer accounts a total of $565,813 in interest on late payments of loss damage waiver fees without disclosing the charge to consumers. The Bureau concluded this is an unfair practice under the Consumer Financial Protection Act of 2010. The consent order requires California Auto to provide a total of $565,813 in consumer relief, which reflects the unlawful loss-damage-waiver fees that California Auto charged its customers. The order also requires California Auto to pay a civil money penalty of $50,000 and prohibits the company from charging interest on loss-damage-waiver fees without disclosing such terms in its contracts with consumers.