Bridgecrest, a name synonymous with car financing for many Americans, found itself in hot water in 2021, facing a barrage of legal challenges. From Pennsylvania to Missouri, these lawsuits aimed to shine a light on alleged shady practices, leaving consumers wondering: “Is Bridgecrest playing fair?”
Pay-to-Pay Fees in Pennsylvania: One major lawsuit accused Bridgecrest of charging illegal “pay-to-pay” fees to Pennsylvania residents. These fees, tacked onto monthly car payments, allegedly pushed interest rates beyond legal limits. Imagine paying an extra toll just to pay your toll – that’s the gist of the accusation. The lawsuit seeks to hold Bridgecrest accountable and potentially compensate affected borrowers.
Credit Reporting Woes: Another lawsuit, filed in Missouri, alleged that Bridgecrest misreported credit information to credit bureaus. This can be a major headache for consumers, impacting credit scores and potentially hindering loan approvals. Think of it as Bridgecrest whispering bad things about you behind your back to the credit score gatekeepers. The lawsuit seeks to ensure accurate reporting and potentially rectify any damage to credit scores.
Arbitration Agreements under Scrutiny: A third legal battle centered around Bridgecrest’s use of arbitration agreements. These agreements often force disputes into private arbitration, bypassing the court system. Critics argue that these agreements can unfairly favor lenders, leaving consumers with limited options for seeking redress. Imagine being forced to settle a disagreement in a back room with no judge in sight – that’s the concern with these agreements. The Missouri Supreme Court ultimately upheld the validity of Bridgecrest’s arbitration agreements in this specific case, but the debate surrounding their fairness continues.
More than Smoke? These lawsuits, though diverse in their nature, paint a picture of a company potentially playing fast and loose with consumer rights. Whether it’s allegedly charging hidden fees, misreporting credit information, or favoring private arbitration, these accusations raise concerns about Bridgecrest’s business practices. It’s important to note that these are just allegations, and Bridgecrest denies any wrongdoing. However, the lawsuits serve as a reminder to consumers to be vigilant when dealing with any car financing company, reading the fine print, and understanding their rights.
FAQs:
Is Bridgecrest banned from doing business?
No, Bridgecrest continues to operate as usual while the lawsuits are ongoing.
Have the lawsuits been resolved?
No, most of the lawsuits are still pending in court.
What can I do if I think Bridgecrest has wronged me?
You can contact a consumer protection agency or an attorney to discuss your options.
What should I look out for when financing a car?
Carefully read all loan documents, ask questions, and compare rates from different lenders.
Is Bridgecrest the only car financing company with legal issues?
No, unfortunately, consumer complaints against car lenders are not uncommon.
What can I do to protect myself from unfair lending practices?
Do your research, be cautious of hidden fees, and don’t be afraid to walk away from a deal that doesn’t feel right.
Sources:
Bridgecrest Acceptance Corporation Hit with Class Action Over Alleged ‘Pay-to-Pay’ Fees in Pennsylvania: https://www.classaction.org/news/bridgecrest-acceptance-corporation-hit-with-class-action-over-alleged-pay-to-pay-fees-in-pennsylvania
Casimir v. Bridgecrest Credit Co.: https://casetext.com/case/casimir-v-bridgecrest-credit-co-llc
Bridgecrest Acceptance Corp. v. Donaldson: https://law.justia.com/cases/missouri/supreme-court/2022/sc99269.html
