Several auto lenders are being fined after the Massachusetts Division of Banks discovered unlicensed or illegal lending activities, as part of a statewide survey of 200 car dealerships in conjunction with the state’s Division of Professional Licensure and the Registry of Motor Vehicles.

The effort examined “Buy Here Pay Here” auto dealerships that sell vehicles using retail installment contracts to ensure that used car dealerships were not pricing vehicles far above book value or charging interest rates beyond the state’s maximum interest rate limit of 21 percent.

Buy Here Pay Here dealerships or the auto financing companies they use are required to be licensed by the DOB. Companies who purchase or take assignment of retail installment contracts from dealers (indirect lenders) are also required to be licensed.

These requirements apply anytime the purchase of a vehicle is financed in two or more installments, regardless of whether interest is charged on the loan.

The investigation resulted in 135 cease directives, $170,000 in fines and penalties and more than $200,000 in consumer reimbursements.

“Very often used vehicles are being sold to consumers with poor or no credit at prices far above book value and at very high interest rates,” Consumer Affairs Undersecretary John Chapman said in a statement. “We understand that this is a financing option of last resort for those consumers, but we want to be sure that what’s happening at dealerships is not predatory and that unfair and deceptive practices are not being employed.”

“The division works to protect Massachusetts consumers from excessive fees and finance charges, and wrongful repossessions,” Commissioner of Banks Terence McGinnis added in a statement. “By ensuring these companies are properly licensed and regulated, they will be subject to regular on-site examinations to determine compliance with various consumer protection laws.”

The five enforcement actions are with:

• Westlake Financial Services and its wholly owned subsidiary Western Funding Inc. Westlake and WFI, national subprime auto lenders based in Los Angeles, sold finance contracts from Massachusetts auto dealers without first obtaining a license from DOB. Several of these had annual effective percentage rates exceeding 21 percent due to the financing of debt cancellation coverage (GAP) premiums. The companies will reimburse 33 consumers of finance charges collected and waive any future charges that accrue on their loans. WFI also must pay a $50,000 administrative penalty and cease lending activity until it obtains a license. DOB anticipates over $200,000 in reimbursements to Massachusetts consumers. This is not Westlake’s first run in with the law, having entered prior consent orders with DOB as well as the state’s Attorney General’s office.

• Cedar Auto Sales LLC for allegedly continuing to originate and hold 157 retail installment contracts after its license expired in 2015. Cedar must pay an administrative penalty of $10,000 and cease lending activity until it obtains a new license with the Division.

• New City Funding Corp. to address failure for allegedly providing adequate right to cure provisions to consumers who fell behind on payments. New City engaged in the use of starter interrupt devices to automatically disable vehicles prior to the expiration of the borrower’s right to cure period. The company will pay an administrative penalty of $90,000 for the alleged violations.

• State Cap Auto Finance Inc. for a variety of deficiencies including excessive fee charges and improper repossession practices. The company will pay a $20,000 administrative penalty plus required consumer reimbursements.