LOS ANGELES -

Westlake Financial Services made public statements late Thursday after the Consumer Financial Protection Bureau penalized the subprime auto finance company and its auto title lending subsidiary Wilshire Consumer Credit for pressuring borrowers using what the regulator deemed to be illegal debt collection tactics.

First off, Westlake offered context of the matter that became public and included orders for the companies to overhaul their debt collection practices and to provide consumers $44.1 million in cash relief and balance reductions as well as pay a civil penalty of $4.25 million.

“Over the last 18 months, WFS has cooperated fully with the CFPB,” the company said. “The CFPB allegations relate to practices as far back as 2010 and to practices that were ceased long ago.”

Westlake indicated that the company consented to the issuance of the consent order “without admitting or denying any of the findings of fact or conclusions of law” and did so in order to avoid lengthy and costly litigation.

The company declared that it shares a “fundamental agreement” with the CFPB in the importance of treating consumers fairly, appropriately and respectfully in all phases of the auto financing experience.

Since 2010, Westlake pointed out that it has voluntarily taken a number of steps to enhance its operational compliance program and improve its compliance management system, including the hiring of a chief compliance officer with extensive experience using compliant debt collection practices.

“WFS is eager to become a leader in operational compliance best practices within the consumer financial services industry and looks forward to an ongoing positive working relationship with the CFPB and all of WFS’ other regulators,” company officials said.

“WFS will continue to fill niches for consumers who may not otherwise be able to receive a reasonably priced auto loan while continuing to deliver to our customers FICO scores that raise more than any other auto finance lender in the industry,” they continued.

“WFS takes its compliance obligations very seriously. We will continue to enhance all of our processes and procedures to ensure that we remain compliant and meet all of our regulatory and legal requirements,” the company went on to say.