Bridgecrest Acceptance Corporation Hit with Class Action Over Alleged ‘Pay-to-Pay’ Fees in Pennsylvania

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A proposed class action alleges Bridgecrest Acceptance Corporation charges Pennsylvania residents unlawful processing fees and usurious interest rates on auto loan payments.

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According to the 10-page case, Pennsylvania’s Consumer Credit Code (CCC) prohibits licensed sales finance companies from imposing a finance charge of over 18 percent on new vehicles or used vehicles less than two years old. Licensees such as Bridgecrest are also prohibited from imposing a finance charge that exceeds 21 percent on vehicles that are over two years old, the complaint relays.

The lawsuit alleges that Bridgecrest, a vehicle financing company licensed under the Pennsylvania CCC, regularly collects from consumers vehicle payments with interest charges that exceed these legal limits.

In particular, the filing contends that Bridgecrest illegally collects from Pennsylvania residents “pay-to-pay” fees—fees that companies charge consumers to process payments. Although the CCC refers to several charges licensees may receive from buyers “in connection with the retail sale of a motor vehicle under an installment sale contract,” pay-to-pay fees are not listed as a permitted charge and are therefore illegal under Pennsylvania law, the case says.

The plaintiff, a Pennsylvania resident, says they entered into a written retail installment contract and security agreement with Bridgecrest when they purchased a used Ford Escape in April 2019. Per the suit, the agreement included a $15,278.43 amount financed and a $13,230.69 finance charge to be repaid over 72 months. However, the finance charge yielded an unlawful 23.28 percent annual percentage rate, the case claims.

The complaint further contends that Bridgecrest illegally charged the plaintiff a $3.95 “money transfer fee” on 12 payments the consumer made by phone using a debit card throughout 2019 and 2020.

The lawsuit seeks to cover any Pennsylvania residents who, during the applicable statute of limitations period, paid a ‘money transfer fee’ or similar fee on an installment payment due to Bridgecrest Acceptance Corporation.

The suit also looks to represent any Pennsylvania residents who, during the applicable statute of limitations period, paid an interest charge above 18 percent on an installment payment due to the defendant on a new motor vehicle, paid an interest charge above 18 percent on an installment payment due to Bridgecrest Acceptance Corporation on a used motor vehicle that was less than two years old, and/or paid an interest charge above 21 percent on an installment payment due to the company on a used motor vehicle that was over two years old.

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