Author: lfsuser

Proposed FTC Buyer’s Guide Changes Not Pro-Consumer

The FTC’s proposed Buyer’s Guide rule is not pro-consumer.

A move by the Federal Trade Commission to modify its buyers’ guide for used cars is being panned by consumer groups, who say the current guide is ineffective and proposed changes are even worse.

The FTC guide gives consumers critical information about who will pay for repairs if something goes wrong with a purchased car, the FTC says. But consumer groups say the guide actually gives misleading information, for example telling buyers that dealers aren’t responsible for repairs to vehicles sold “as is.”

That’s not completely accurate, according to Rosemary Shahan of the California-based Consumers for Auto Reliability and Safety, one of the groups opposing current and proposed FTC wording.

More accurately, a vehicle sold “as is” may still have an implied warranty on it under federal law, she said. But the agency’s blunt language can mislead buyers and give dealers a shield when denying future repair work.

More at: http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20130217/NEWS/302170358/-1/NEWS0503

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The Auto Fraud Legal Center Helps Kick Abusive Auto Dealer Out of Marine Base

The Auto Fraud Legal Center brought a number of suits against Classic Chariots on behalf of servicemembers who were taken advantage of. In addition to favorably resolving the cases, The Auto Fraud Legal Center alerted the Marine Corps directly. Thanks in part to the AFLC’s efforts, MCCS chose not to renew Classic Chariot’s commercial sponsorship. THis had the effect of kicking Classic Chariots off the base.

The AFLC supports our troops. If you have problems with a vehicle you purchased, please call us.

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AFLC Attorney Angela Smith Quoted in Dealer Industry Magazine Article About Arbitration Decision

AFLC Attorney Angela Smith was quoted in Automotive News, an industry news magazine, in an article concerning an appeal that was recently decided in our client’s favor.

“A California dealership cannot force a customer to arbitrate his individual and class-action allegations of illegal fee collection and other claims, a state appellate panel has ruled.

Plaintiff’s lawyer Angela Smith of San Diego said the decision means dealers ‘can’t just slap stuff on the back of a contract and hope it flies.’ In addition, she said, the arbitration provision as written would have prevented her client from pursuing class-action claims and would have exposed him to high upfront costs and, potentially, would make him liable for the dealership’s legal costs.” Read more: http://www.autonews.com/article/20130123/LEGALFILE/301239996#ixzz2IpL6iGHH

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Car Dealers Maintain Lowest Honesty Rankings

According to an annual Gallup poll, car dealers once again win the race to the bottom with the lowest honesty rating amonst a variety of professions in the United States. Over the past 36 years of the poll, car dealers have consistently bottomed out the list, with the exception of last year. From the survey:” Car salespeople have been at the bottom of the list every year except 2011, when they tied members of Congress with a 7% honesty rating. Car salespeople’s perceived honesty has never climbed out of the single-digit range in the history of the list.”

You can find more about the numbers (and how lawyers fared) here: http://www.gallup.com/poll/159035/congress-retains-low-honesty-rating.aspx.

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The Unfairness of Hidden Arbitration Agreements

“It’s a one-sided system. The corporations write the clauses and they decide who the arbitrator is, and a consumer has no say in the process whatsoever,” Ellen Taverna, legislative director for the National Association of Consumer Advocates (NACA) said. “It’s privatizing justice without any legal protection. There’s no meaningful appeal, there’s no judge or jury making the decision, there’s no public review of the decision, there’s no requirement that arbitrators have legal training or even follow the law.” More at: https://www.walletblog.com/2012/12/class-action-bans/

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FTC Considering Changes to Buyer’s Guide Requirements

Used-car dealers would need to give customers more information on warranties under changes to window sticker rules that the Federal Trade Commission proposed recently.

Read more: http://www.autonews.com/article/20121204/RETAIL07/121209946/ftc-proposes-additions-to-used-car-window-stickers

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Banks Hide Anti-Consumer Arbitration Clauses in Consumer Contracts

“A 2012 study by the Pew Charitable Trusts’ Safe Checking in the Electronic Age Project found 66 percent of checking account agreements at the nation’s largest banks had mandatory arbitration clauses tucked away inside. Even if the customer agreement allows you to use the court system to challenge your bank, you’ll probably still find some restrictions. Of the banks surveyed, a whopping 98 percent had clauses waiving a jury trial; 32 percent had clauses requiring customers to pay some or all legal losses, costs and expenses.”

Read more: http://www.bankrate.com/finance/banking/bank-mandatory-arbitration-1.aspx#ixzz2EgcvXLx7

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$1.4 Million international car fraud operation Busted

Seven people who used at least 20 aliases and five fictitious companies among them, advertised cars on websites such as eBay and Autotrader and arranged for wire transfers to pay for the vehicles. No vehicles were delivered.

More:

http://www.usatoday.com/story/money/cars/2012/11/23/car-sales-scam/1722631/

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Kia, Hyundai Found to Have Overstated Fuel Economy

According to Consumer Reports, the EPA found that many vehicles in Kia and Hyundai’s lines did not meet advertised fuel economy claims. The New York Times is reporting that one consumer was so frustrated with the fuel economy in his 2012 Hyundai Elantra, he made this website:http://www.my2012hyundaielantragetslousygasmileage.com/ For specifics and to see if your vehicle is one affected by Kia’s and Hyundai’s claims, check out the chart below from the Consumer Reports’ website. If your vehicle is listed, head over to www.hyundaimpginfo.com or www.kiampginfo.com to claim your refund.

Make/model	Old EPA mpg	New EPA mpg
	City	Hwy	Combined	City	Hwy	Combined
2011-2013 Hyundai Elantra	29	40	33	28	38	32
2011-2013 Hyundai Sonata Hybrid	35	40	37	34	39	36
2012-13 Hyundai Accent	30	40	33	28	37	31
2012-13 Hyundai Azera	20	29	23/24	20	29/29	23
2012-13 Hyundai Genesis 3.8	19	29	22	18	28	22
2012-13 Hyundai Genesis 4.8	17	26	20	16	25	19
2012-2013 Hyundai Tucson	21	28	23	20	27	23
2012 Hyundai Veloster (manual)	28	40	32	27	37	31
2013 Hyundai Santa Fe Sport	21	28	23	20	26	22
2013 Hyundai Veloster	28	40	32	27	37	31
2012-2013 Kia Optima Hybrid	35	40	37	34	39	36
2012-2013 Kia Rio	30	40	33/34	28/29	36/37	31/32
2012-2013 Kia Sorento	21	28	23	20	26	22
2012-2013 Kia Soul	26	34	29	23/24	28/29	25/26
2012-2013 Kia Sportage	21	26	23	20	25	22

Chart from Consumer Reports: http://news.consumerreports.org/cars/2012/11/epa-finds-hyundai-exaggerated-fuel-economy-claims-refunds-coming-to-customers.html

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