AG Nessel 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. We will continue to pursue agreements that prioritize Michigan residents and hold companies to fair and transparent business practices.” – AG Nessel