Pennsylvania AG Shapiro Shuts Northwest Bank for Aggressive Debt Collection Practices

HARRISBURG, PA (STL.News) Pennsylvania Attorney General Josh Shapiro today announced that the Pennsylvania Attorney General’s Office has arrested North West Shore to engage in aggressive collection practices on auto loans.

“Northwest Bank has the right to take legal action when borrowers fail to repay their loans,” Attorney General Shapiro said. “But when they threaten borrowers with lawsuits that they never intend to sue or deliberately sue in counties far from the borrower, they are manipulating the system for their own benefit. We will not let any business, large or small, exploit Pennsylvanians for a fraudulent payday. “

The Pennsylvania attorney general’s office entered into voluntary assurance of compliance with Northwest after the office received reports that the bank had filed multiple collection suits in a district court in Warren, Pa., Despite the fact that the Most of the defendants in these actions were consumers. who bought their vehicles in another part of the state and simply had their vehicle payment contract assigned to Northwest Bank. Insurance also identified Northwest’s practice of sending a post-judgment letter threatening further legal action, including the potential sale of real estate by the sheriff, as a violation of Pennsylvania law.

Under the Insurance, Northwest, while not admitting any breach, must fully comply with the above-mentioned debt collection and consumer protection laws. In addition, any judgment obtained since January 1, 2013 as a result of these practices will be canceled and any consumer who has paid sums to satisfy these judgments will receive a refund or a credit on their balances. Consumers eligible for relief will be notified by Northwest.

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