The state Attorney General’s Office on Wednesday ordered Northwest Bank to refrain from using aggressive collection practices on car loans, State Attorney General Josh Shapiro announced.

The state Attorney General’s Office entered into an assurance of voluntary compliance with Northwest Bank after receiving information that the bank had filed multiple collection suits in a district justice court in Warren.

Shapiro said most of the defendants in those actions were consumers who purchased their vehicles in another part of the state and had their vehicle installment contract assigned to Northwest Bank.

The assurance compliance also identified Northwest Bank’s practice of sending a post-judgment letter threatening further legal action, including a potential sheriff’s sale of real property, as violative of Pennsylvania law, Shapiro said.

“Northwest Bank has a right to pursue legal action when borrowers don’t pay back their loans,” Shapiro said. “But when they threaten borrowers with legal action they never intend to pursue or purposefully file lawsuits in counties some distance away from the borrower, they are manipulating the system for their own benefit. We will not let any business, big or small, exploit Pennsylvanians in pursuit of a rip-off pay day.”

Under the terms of the assurance, Northwest Bank, while not admitting any violation, must comply with the aforementioned debt collection and consumer protection laws.

Any judgments obtained since Jan. 1, 2013, as a result of these practices will be canceled and any consumers who paid amounts toward these judgments will receive restitution or a credit toward their balances, Shapiro said.

Consumers qualifying for relief will receive notification from Northwest Bank.