Monterey Finance Hit with $2.4M Debt Relief for Predatory Practices

New York Attorney General Letitia James has secured a staggering $2.4 million in debt relief for 835 New Yorkers victimized by Monterey Finance’s deceptive and illegal leasing practices.

Monterey Finance, accused of misleading consumers with unlawful lease agreements, was ordered to cancel all outstanding leases, pay $175,000 in penalties, and make reforms to end its fraudulent business methods.

The investigation revealed that Monterey charged consumers exorbitant fees, often doubling the costs of goods and services they believed they were purchasing. Consumers were even advised to surrender their pets to shelters when unable to meet monthly payments.

Under the settlement, Monterey must stop collecting on any debt associated with its leases in New York. The AG’s office found that Monterey violated state laws by misrepresenting lease agreements as traditional financing and charging illegal fees for services like car repairs with no residual value.

One consumer who entered a finance agreement to purchase a $2,000 puppy ended up paying over $3,500 due to the deceptive practices. Attorney General James emphasized the need for accountability in predatory lending practices, stating, “These misleading tactics cost New Yorkers millions of dollars.”

The settlement marks a significant victory for consumers against predatory lenders and serves as a warning to other financial services companies engaging in similar practices.