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AG Nessel Secures $3.25 Million Settlement with Lease-to-Own Financing Company Over Auto-Repair Agreements
May 14, 2026
LANSING – Michigan Attorney General Dana Nessel has secured an agreement with West Creek Financial, Inc., a Virginia corporation doing business under the name Koalafi, to resolve allegations that the lease-to-own financing company violated the Michigan Consumer Protection Act and Rental-Purchase Agreement Act. Under the Assurance of Voluntary Compliance and Discontinuance (PDF), West Creek Financial will pay $3.25 million to the Department of Attorney General. The settlement will primarily be used to provide restitution to eligible Michigan consumers who entered into auto-repair lease-to-own agreements with the company.
“I am proud of our Consumer Protection Team for securing millions in restitution and reducing the financial burden on current customers,” said Attorney General Nessel. “We will continue to pursue agreements that prioritize Michigan residents and hold companies to fair and transparent business practices.”
The Department began investigating West Creek Financial in 2024 following consumer complaints that lease-to-own agreements, traditionally meant for the lease and acquisition of goods, were being used for auto-repair transactions, including labor, parts, and fluids. As part of the agreement, West Creek Financial will pay $3.25 million for consumer restitution and administrative costs. The distribution of restitution payments will be handled through a settlement administrator. Consumers who are eligible for restitution will receive notice from the settlement administrator with information on how to submit a claim.
Within 45 days, the company is also required to ensure that lease-to-own agreements are not used to pay for auto-repair-related parts and services. Consumers who previously entered into such agreements and have already paid at least 1.75 times the cash price will have their balances reduced to zero under the agreement and will be granted immediate ownership of purchased parts without further payment.
To file a complaint with the Attorney General, or get additional information, contact:
Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll-free: 877-765-8388
Online complaint form
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