A class action lawsuit accuses financier Westlake Portfolio Management of allegedly improperly attempting to collect auto warranty service contracts from people who agreed to purchase such plans from the now defunct U.S. Auto Finance, but never actually received what they agreed to pay for.
On Feb. 16, named plaintiffs Tamika Hueston, Bundy Laney, Cecily Moody, Jattiya Davis, and Danielle Caines filed suit in Los Angeles federal court, accusing Westlake of alleged violations of California and federal laws.
The lawsuit alleges that Westlake misrepresented the amounts owed by consumers in connection with servicing automobile finance contracts. Furthermore, it is claimed that U.S. Auto collected funds for Dealer Owned Warranty Company Service Agreement (DOWC) Contracts, but never actually purchased the service contracts on behalf of consumers.
According to the complaint, U.S. Auto collected millions from vehicle purchasers for the DOWC plans, but never actually paid the money to activate the DOWC plans.
As a result, thousands of consumers who paid for motor vehicle repair coverage and other protection have no such service contracts in force for Westlake to collect upon.
Additionally, the suit accuses Westlake of violating the Uniform Commercial Code (UCC) by failing to provide proper notice when repossessing and reselling financed consumer goods.
And the lawsuit accuses Westlake of allegedly misrepresenting to consumers the amount they may still owe.
The plaintiffs are seeking actual and statutory damages, treble damages, punitive damages, injunctive relief, and attorneys’ fees and costs.
The plaintiffs are represented by attorneys Kyle McLean and Lisa R. Considine, of Siri & Glimstad, of Los Angeles.