C & F Finance Company Facing Lawsuit Over Alleged Collection of Convenience Fees

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A proposed class action recently removed to Maryland federal court details two plaintiffs’ allegations concerning defendant C & F Finance Company’s alleged violations of Maryland’s Credit Grantor Closed End Credit Provisions (CLEC).

The plaintiffs, a husband and wife, claim the Retail Installment Sale Contract (RISC) of $22,940.88 for their purchase of a 2008 Ford Edge was assigned to C & F Finance, with finance charges over the lifetime of the RISC pegged at $12,281.37. According to the plaintiffs, C & F Finance received payments on their account “totaling less than the amount financed,” indicating that the defendant charged one or more convenience fees. 

According to the lawsuit, CLEC restricts grantors such as the defendant from charging or collecting any fees or interest not specifically defined in a credit contract.