A closer look at the Consumer Financial Protection Bureau’s latest enforcement action.
Federal Agencies Intensify Scrutiny on the Auto Industry
USASF CFPB Fine 2025. The Consumer Financial Protection Bureau (CFPB) concluded its case against USASF, an auto-loan servicer, with a significant ruling in the U.S. District Court for the Northern District of Georgia. The penalties total more than $42 million, showcasing the growing consequences of auto industry malpractices.
Breakdown of Penalties
The judgment against USASF includes:
- $25.5 million in compensatory damages
- $5.8 million in restitution
- $1.2 million in prejudgment interest
- $10 million in civil penalties
USASF, based in Lawrenceville, Georgia, operated 31 buy-here, pay-here dealerships across the southeast. According to court documents, the company has filed for bankruptcy and shuttered its dealerships.
CFPB’s Claims Against USASF
The CFPB’s 2023 lawsuit alleged multiple violations by USASF, including:
- Incorrectly disabling vehicles over 7,500 times, with 1,500 instances occurring after customer assurances.
- Failing to provide GAP refunds.
- Misapplying customer payments.
- Illegally repossessing vehicles.
Broader Enforcement Actions in the Auto Industry
The CFPB judgment aligns with the Federal Trade Commission’s (FTC) heightened enforcement efforts. Recent actions include a joint complaint by the FTC and Maryland Attorney General against the Lindsay Automotive Group, alleging deceptive practices such as:
- Advertising prices are unavailable to most consumers.
- Charging excessive junk fees and unauthorized add-ons.
- Directing consumers to higher-rate loans and claiming financing through the dealership was mandatory.
Previous FTC Enforcement Highlights
The FTC’s complaint against Lindsay Automotive follows a $20 million settlement with Leader Automotive Group and Auto Canada. Allegations in that case included:
- Misleading pricing and vehicle availability claims.
- Charging for add-ons without consent.
- Adding hidden fees and posting fake reviews.
- Selling imported vehicles without proper disclosures.
Growing Accountability for Industry Practices
These cases highlight a trend toward increased regulatory oversight in the auto industry, signaling that federal agencies prioritize consumer protection and fair business practices. Businesses failing to comply with these standards face significant legal and financial repercussions.