August 26, 2020
LANSING – Michigan Attorney General Dana Nessel today announced that the state has reached a $1.8 million civil settlement with foreign online car title loan company Liquidation LLC, which did business in Michigan under the names “Autoloans” and “Car Loans.” These companies made online vehicle loans to Michigan consumers at triple-digit interest rates, often in excess of 231 percent APR.
In addition to the civil settlement, Liquidation LLC previously pled no contest to 21 counts of larceny by false pretenses before Judge Paul J. Denenfeld in Kent County Circuit Court. Future court dates have not yet been scheduled.
Two former Liquidation LLC employees also recently entered no contest pleas in Kent County Circuit Court.
William McKibbin pled no contest on Aug. 10 to promoting a pyramid promotional scheme, a seven-year felony. McKibbin is scheduled for sentencing on Oct. 14.
Mark Weiner pled no contest on July 6 to participating in a pyramid promotional scheme. As Weiner's conviction was a misdemeanor, he was immediately sentenced on July 6 to time served and three years' probation.
“The criminal investigation into this case is still ongoing. However, I’m grateful that this civil settlement provides compensation for victims of a company that sought extreme profits by taking advantage of its customers,” Nessel said. “Michiganders deserve to be treated fairly when financing their vehicle purchases, and lenders that don’t treat consumers with that level of respect can expect consequences.”
The civil settlement includes the following key terms:
The settlement fund will provide $1.8 million to compensate Michigan victims of Liquidation LLC, with the claims process to be administered by the Attorney General.
The Attorney General will make all reasonable efforts to notify every Michigan victim by mail of the establishment of the fund, and the process to submit a claim.
Victims seeking compensation from the fund must submit a completed claim form along with any required supporting documentation to the Attorney General. Supporting documentation may include proof of loan, proof of payments made to Autoloans/Car Loans and vehicle information.
Victims who make claims will be evaluated according to the following tiers:
Tier 1 Claimant: These are claimants who have made payments totaling less than the principal amount of their loans and whose vehicles have not been repossessed by Autoloans/Car Loans. Tier 1 claimants will not receive payment from the fund.
Tier 2 Claimant: These are claimants who have made payments totaling more than the principal amount of their loans and whose vehicles have not been repossessed by Autoloans/Car Loans. Tier 2 claimants are eligible for payment from the fund in the amount the claimant paid over principal. For example, if a claimant borrowed $1,500 and paid $2,000 toward the loan, the claimant would be eligible to receive $500 from the fund.
Tier 3 Claimant: These are claimants who lost a vehicle due to repossession by Autoloans/Car Loans. Tier 3 claimants are eligible for payment from the fund in the amount of the fair market value of their vehicle plus any payments made to Autoloans/Car Loans less the principal amount of the loan. For example, if a claimant borrowed $1,500, paid $500 toward the loan and had a vehicle with a fair market value of $3,500 repossessed, the claimant would be eligible to receive $2,500 from the fund.
If you believe you were a victim of Liquidation LLC because you are or were a Michigan resident and had a car title loan with Autoloans or Car Loans between April 1, 2014, and Feb. 8, 2016, please contact the claims administrator to confirm your contact information by mail at Comprehensive Risk Services LLC, Attn: Owen Smith, 24900 Joseph Drive, Novi, MI 48375; by phone at 248-344-8554; or by email.