Harley-Davidson to Pay 228K for Failing to Properly Refund Customers

Harley-Davidson Financial Services agreed to pay $228,000 for failing to pay proper refunds to more than 600 customers in Massachusetts, according to the attorney general's office.

Harley-Davidson allegedly did not correctly refund finance contract enrollment fees, which borrowers typically pay in return for more special loan terms, the AG says. When paid off early, borrowers are usually allowed to get pro-rated refunds of the fees, typically through the dealership that arranged the loan, according to the AG's Office, adding that customers can find it difficult to get these refunds if a dealership goes out of business.

The AG's Office says customers will receive their payments in early July, and that Harley-Davidson has to also pay $25,000 to Massachusetts for the cost of the investigation.

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