The financing arm of U.S. motorcycle maker Harley-Davidson Inc. reached a settlement with the state after allegedly hogging customer refunds.
Harley-Davidson Financial Services will pay $228,133 to 600-plus Massachusetts consumers, according to Attorney General Martha Coakley's Office. It also must pay $25,000 to the cover the cost of the state's investigation.
"We are pleased that this finance company stepped forward to reimburse Massachusetts customers and promptly adopted changes to its procedures," Coakley said in a statement.
Harley-Davidson Financial Services was accused of not correctly refunding optional financing contract enrollment fees paid by customers in exchange for special loan terms. Customers often are entitled to pro-rated refunds of the fees when they pay off their loans early.
Borrowers eligible for refunds will be mailed notices and payments in July.
A Harley-Davidson spokesman said the facts of Coakley's announcement "speak for themselves."
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