A national subprime auto lender will pay more than $5.5 million to settle Federal Trade Commission charges that it used illegal tactics to service and collect consumers’ loans, including collecting money consumers did not owe, harassing consumers and third parties and disclosing debts to friends, family and employers.

Consumer Portfolio Services Inc. (CPS), based in Irvine, Calif., will refund or adjust 128,000 consumers’ accounts more than $3.5 million and forebear collections on an additional 35,000 accounts to settle charges it violated the FTC Act.

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