Harley-Davidson Financial Services, a division of Harley-Davidson Inc., will pay $228,000 to more than 600 consumers in Massachusetts after the Milwaukee-based financing company allegedly failed to issue proper refunds to consumers under the terms of its motorcycle finance agreements, according to a press release from Massachusetts’ Attorney General Martha Coakley.
In exchange for special loan terms, borrowers pay optional enrollment fees and when the loans are paid off early, consumers can receive a pro-rated refund of the fees. Typically, the refunds are given back to the borrowers at the dealership that helped to arrange the loan, but when dealerships go out of business borrowers have had trouble getting the refunds, according to the press release.
Under the terms of the agreement hammered out through the Massachusetts attorney general's office, the finance company will reimburse the money owed to the borrowers and pay $25,000 to the Commonwealth for the cost of the investigation. The notices and payments are expected to be mailed out in early July, according to the press release.
The problem was isolated to consumers in Massachusetts.