Who Westlake Financial Is
Westlake Financial Services, LLC is an indirect auto finance company headquartered in Los Angeles, California. They do not make loans directly to consumers at a dealership. Instead, they purchase retail installment contracts — the financing agreement you signed when you bought your car — from auto dealers nationwide.
That means you may never have chosen Westlake. You financed through the dealership, and the dealership sold your contract to Westlake. Westlake is now your lender whether you agreed to work with them or not.
Westlake specializes in subprime and near-subprime loans — borrowers with lower credit scores who cannot qualify for conventional financing. Their parent company is the Hankey Group, a Los Angeles-based conglomerate. Westlake claims over $7 billion in assets and services loan accounts across the country.
Their subsidiary, Wilshire Consumer Credit, operates similarly but focuses on auto title loans.
Why You Might Be Hearing From Them
There are a few common reasons Westlake contacts consumers:
- You financed a car through a dealership that sold your contract to Westlake.
- You are behind on payments and Westlake is attempting to collect.
- Your car was repossessed and Westlake is pursuing a deficiency balance.
- You purchased a car from a dealership that went out of business — Westlake has acquired loan portfolios from failed dealerships including US Auto Sales and American Car Center — and your loan was transferred to them as part of that acquisition.
That last category has generated significant consumer complaints. Some borrowers report being contacted by Westlake — and in some cases having their vehicles repossessed — despite being current on payments to the original dealer.
Westlake’s Regulatory History
Westlake Financial is not a company without a record. Federal regulators have taken enforcement action against them multiple times.
2015 CFPB Consent Order — $44.1 Million
The Consumer Financial Protection Bureau found that Westlake and Wilshire Consumer Credit used a web-based service called Skip Tracy to place calls to borrowers while disguising the caller ID — making it appear calls were coming from repossession companies, family members, or other third parties. The CFPB found that debt collectors falsely threatened borrowers with criminal prosecution and illegally disclosed debt information to borrowers’ employers, friends, and family. The enforcement action covered more than 137,000 loan accounts. Westlake was ordered to pay $44.1 million in cash relief and balance reductions and to overhaul its debt collection practices. See the CFPB enforcement action.
DOJ Settlement — Illegal Military Repossessions
The Department of Justice found that Westlake and Wilshire repossessed 70 vehicles belonging to active-duty servicemembers without obtaining the court orders required by the Servicemembers Civil Relief Act. The SCRA requires a court to review and approve any repossession when the servicemember took out the loan and made payments before entering military service. Westlake paid $10,000 to each affected servicemember plus lost equity, repaired their credit, and paid a civil penalty to the United States. See the DOJ settlement.
TCPA Class Action Settlement
Westlake faced a class action lawsuit over automated calls placed to consumers’ cell phones without consent in violation of the Telephone Consumer Protection Act. See the TCPA settlement details.
Massachusetts — Illegal Interest Rates
The Massachusetts Division of Banks entered a consent order requiring Westlake to reimburse borrowers who were charged annual percentage rates exceeding the state maximum of 21 percent due to the financing of GAP insurance, with anticipated reimbursements of $200,000.
FTC Action and Wrongful Repossession Complaints
A 2019 FTC action accused Westlake of repossessing vehicles using deceptive tactics without proper documentation or notice. More recently, Westlake’s acquisition of loan portfolios from failed dealerships generated a wave of complaints from consumers whose vehicles were repossessed despite being current on their payments.
What If Westlake Is Contacting You About a Debt
If Westlake is calling you or sending letters about a balance, you have rights under both federal and California law.
Under the federal Fair Debt Collection Practices Act (15 U.S.C. § 1692 et seq.) and California’s Rosenthal Fair Debt Collection Practices Act (Cal. Civ. Code § 1788 et seq.), debt collectors are prohibited from using false, deceptive, or misleading representations, threatening action they cannot legally take, disclosing your debt to third parties, and calling at unreasonable hours or with excessive frequency.
Given Westlake’s documented history of FDCPA violations, if their collectors are threatening you, misrepresenting the debt, or contacting people in your life about what you owe, those practices may be independently actionable.
What If Westlake Repossessed Your Car
If Westlake has already repossessed your vehicle, California’s Rees-Levering Motor Vehicle Sales and Finance Act (Cal. Civ. Code §§ 2981–2984.6) gives you specific rights — including the right to reinstate the loan, redeem the vehicle, retrieve your personal property, and challenge any deficiency they try to collect.
If they are suing you for a deficiency balance, do not assume you owe what they say. Westlake must comply with every Rees-Levering requirement before they can collect. If they missed any of them, the deficiency may be uncollectible entirely.
Our course walks through how to respond to a California debt lawsuit step by step: https://law-without-lawyers.com/ca-debt-lawsuit/
What If the Debt Is Bigger Than Just the Car
If a Westlake deficiency is part of a larger financial picture — credit card debt, medical bills, other accounts in default — bankruptcy may be the more efficient exit. Chapter 7 can discharge a Westlake deficiency balance along with your other unsecured debt. Chapter 13 can stop a repossession that has not yet gone to auction and let you restructure what you owe.
Bankruptcy is not the right answer for everyone. But if Westlake is one of several creditors coming at you at once, it is worth understanding your options before a judgment is entered. You can request a consult to speak with a bankruptcy attorney.
Frequently Asked Questions
Is Westlake Financial a legitimate company?
Yes. Westlake Financial Services is a licensed auto lender operating legally in California and nationwide. That does not mean their collection practices are always lawful — federal regulators have found otherwise multiple times.
Why do I owe Westlake if I never dealt with them?
Because your original dealer sold your financing contract to Westlake. This is standard practice in auto lending. The assignment is usually permitted under your original contract even if you were not notified in advance.
Can Westlake repossess my car without notice?
In California, a lender can repossess your vehicle without advance notice the moment you default. But they cannot breach the peace in doing so, and they must follow strict post-repossession notice requirements under Cal. Civ. Code § 2983.2 before they can sell the car or pursue a deficiency.
What if Westlake repossessed my car but I was current on payments?
Document everything — payment records, bank statements, confirmation numbers. If Westlake repossessed your vehicle while you were current, that may be a wrongful repossession claim under California Civil Code § 2983.3 and a violation of the Rosenthal Act and FDCPA.
Does this apply outside California?
Laws vary by state. The FDCPA is federal and applies nationally. California’s Rosenthal Act and Rees-Levering protections are California-specific. If you are in another state, consult the rules in your state.