In a recent move reflecting an evolving regulatory landscape, Massachusetts’s Attorney General (AG) is intensifying his office’s focus on the motor-vehicle-repossession sector. The AG’s concentrated efforts came to light in a recent Assurance of Discontinuance (AOD), released on January 17, 2023. In this AOD, the AG made it clear that an investigation is underway concerning “entities collecting, servicing and/or funding” motor-vehicle-secured retail-installment contracts.
It is important for legal professionals working in this space to carefully monitor these developments. This action by the AG poses new opportunities and challenges for corporations and law firms alike when navigating client relationships and mitigating risk in repo-related transactions.
According to the AG’s office, there are two primary areas of compliance that are receiving particular attention. For a more detailed insight into the proceedings, please refer to the full report by McGuireWoods LLP. While the specific areas of compliance have not been disclosed in this summary, they no doubt will have implications for those in the motor vehicle and finance industries.
In this new era of increased regulatory vigilance, it is essential for corporate and law firm counsels to stay on top of any developments in order to mitigate any potential legal repercussions and to anticipate strategic shifts in business practices.