WASHINGTON (AP) — The Justice Department says Capital One has agreed to pay $12 million to resolve allegations the bank violated special protections in federal law for members of the military.
The government says Capital One wrongfully foreclosed on some homes and improperly repossessed some cars. In addition, the government says the bank obtained wrongful court judgments against some service members and improperly denied interest rate relief on some credit card and car loans.
In a settlement under the Servicemembers Civil Relief Act, Capital One will pay at least $125,000 to each service member whose home was unlawfully foreclosed upon and at least $10,000 to each service member whose vehicle was unlawfully repossessed.
Capital One will provide $5 million to service members denied appropriate benefits on credit card accounts, auto and consumer loans.
http://wardsauto.com/site-files/wardsauto.com/files/uploads/2012/07/UsaDe11_2012.pdf Galpin Ford (#1 on the list) made $17,053,723 in Finance and Insurance revenue on 9,527 total vehicles sold. This equals an average of $1,790.04 in F&I revenue per vehicle.
Strickland Chevrolet (#119 on the list) sold the least number of vehicles of any dealer on the list. They made $4,315,886 in Finance and Insurance revenue on 1748 total vehicles sold. This equals an average of $2,469.04 in F&I revenue per vehicle.
Learn MoreNineteen car dealerships nationwide were charged within a two-month span for deceptive advertising practices. The flood of complaints from consumers could result in harsh disciplinary action and further charges levied against dealers.
“For 2011, the number of complaints involving auto related issues went up dramatically; it’s now in the top 10 (complaints),” said Robin Thurston, staff attorney with the FTC. “We are certainly getting more complaints.” The following is a list of recent actions taken against dealers by state and federal regulators for deceptive advertising:
FTC Charges Dealers in South Dakota, North Carolina, Connecticut and West Virginia: In March, the FTC charged five car dealers in South Dakota, North Carolina, Connecticut and West Virginia with running advertisements that falsely promised to pay off trade-ins even if the customer still owed money on the vehicle. Posted to dealer websites and YouTube, these ads deceived consumers by making them think that they wouldn’t have to pay off the loan on their trade-in when, according to the FTC, the dealers rolled the negative equity customer’s new vehicle loan. Attorneys General in the four states have, consequently, given a lot of attention to issues with car dealerships in the past few months.
Advertised Sales Price Not Honored in Vermont: In May, 10 Vermont dealerships entered into an Assurance of Discontinuance with Attorney General William Sorrell after his office charged them with not honoring their advertised sales prices. The dealers had to pay refunds to the consumers and one of the companies had to pay $16,000 in penalties to the state.
Massachusetts Dealership Charged With Deceptive Marketing: A family of three Massachusetts dealerships were ordered in May to pay a total of $225,000 in restitution, civil penalties and attorney fees because of deceptive marketing tactics, according to state Attorney General Martha Coakley. The operation was charged with advertising the dealer’s cost of vehicles for sale rather than the actual purchase price. Additionally, employees were charged with having customers sign incomplete documents which were later filled in with a higher price than negotiated. Employees also charged fees for unwanted or undisclosed F&I products and services. The dealership denied the wrongdoing but cooperated with the Attorney General’s office.
Claim Filed Against New Jersey Dealer for Not Disclosing Vehicle Damage: New Jersey Attorney General Jeffrey Chiesa’s office filed suit against a Paterson-based used-car dealership because it sold used vehicles without disclosing prior damage or use. The 51 identified used vehicles the dealership offered for sale had a total of more than $200,000 in damage that went undisclosed to consumers, according to a press release. The dealership also failed to include promised equipment, told customers the vehicles were covered by a warranty when there was none, and failed to disclose to consumers that the sales price didn’t include licensing, registration fees and taxes
Learn Morehttp://moneyland.time.com/2012/06/18/4-rules-for-getting-a-car-loan/ Know Your Credit Situation
Shop Around
Don’t Get Upsold
Avoid the Yo-Yo Trap
Learn MoreOn June 14, 2012, the Honorable Elihu M. Berle denied defendants’ demurrer to Aurelio Deniz’s claims on behalf of two proposed classes in Deniz v. Maurice J. Sopp & Son, et al., Los Angeles Superior Court Case No. BC476936. The first class identified in Mr. Deniz’s lawsuit is consumers who purchased vehicles from Maurice J. Sopp & Son and whose contracts do not separately itemize fees due to the DMV for license fees and registration, transfer, and titling fees. The second class identified in Mr. Deniz’s lawsuit is all car buyers in California whose purchase contracts do not separately itemize fees due to the DMV for license fees and registration, transfer, and titling fees, and whose contracts are held by Chase Auto Finance Corp. Mr. Deniz alleges Sopp & Son made improper disclosures on contracts for customers who purchased vehicles between January 12, 2008, and January 12, 2012, and that Chase Auto Finance accepted such contracts from Sopp and other dealerships throughout California.
If any of these practices happened to you at Maurice J. Sopp & Son, in Bell, or any other dealership in California, or your contract was assigned to Chase Auto Finance Corp., and you would like more information about this class action case or how the Auto Fraud Legal Center can help you, please feel free to contact Hawk Barry, either by phone at 800-466-5366, or by filling out the contact form at the left.
Learn MoreOn June 11, 2012, the Honorable Andrew J. Guilford granted Shanna Kuxhausen’s Motion for Remand To State Court, after Defendant BMW Financial Services removed Kuxhausen v. Crevier Motors Inc., et al., Orange County Case No.30-2011-00504919-CU-CO-CXC, to the United States District Court for the Central District of California.
The first proposed class identified in Ms. Kuxhausen’s lawsuit is consumers who purchased vehicles from Crevier BMW and signed backdated contracts. Ms. Kuxhausen alleges Crevier BMW would cancel contracts and have customers sign new contracts, and the new contracts would be dated the date of the customer’s original contract. The second class identified in Ms. Kuxhausen’s suit is consumers who purchased vehicles from Crevier and whose contracts do not separately itemize fees due to the DMV for license fees and registration, transfer, and titling fees. The third class identified in Ms. Kuxhausen’s lawsuit is all car buyers in California whose purchase contracts do not separately itemize fees due to the DMV for license fees and registration, transfer, and titling fees, and whose contracts are held by BMW Financial Services NA, LLC. Ms. Kuxhausen alleges Crevier BMW made improper disclosures on contracts for customers who purchased vehicles between August 30, 2007, and August 30, 2011, and that BMW Financial Services accepted such contracts from Crevier and other dealerships throughout California.
If any of these practices happened to you at Crevier BMW, in Santa Ana, or any other dealership in California, or your contract was assigned to BMW Financial Services NA, LLC, and you would like more information about this class action case or how the Auto Fraud Legal Center can help you, please feel free to contact Hawk Barry, either by phone at 800-466-5366, or via the contact form on the left.
Learn Morehttp://carconsumers.org/usedcarbuyingtips.htm 1. Either save your money and pay cash or join a local credit union and establish credit
2. Find the best cars in your price range
3. Decide what make, model and year of car is the best deal for you
4. Check online sites or local newspapers
5. Choose a car offered for sale by the owner
6. Check out the vehicle history
7. Inspect the car closely yourself
8. Have the car inspected by a reliable, trustworthy mechanic BEFORE you agree to buy
9. Check for safety recalls
10. AFTER the car checks out OK and the mechanic confirms that it’s safe to drive
11. Negotiate a fair deal
12. Complete the sale
Learn Morehttp://lifeinc.today.msnbc.msn.com/_news/2012/05/31/11959202-shady-car-dealers-targeting-military-buyers?lite Holly Petraeus, director of the Office of Servicemember Affairs at the Consumer Financial Protection Bureau, warns military personnel to be on guard when they walk onto a car lot.
“You have these car places that spring up around military installations selling used cars for a very marked-up price and then putting high financing on top of that,” she says.
Military personnel can be especially vulnerable customers. They’re young. This may be their first car purchase. They often have a limited or negative credit history.
Learn MoreAfter hearing oral arguments on the matter, on May 22, 2012, the Court of Appeal reversed the trial court’s order and denied Haddad Dodge’s Motion to Compel Arbitration, in Barnes v. Bakersfield Dodge, Inc., Kern County Case No. S-1500-CV-271087 WDP, allowing the class action to proceed in court. The Court of Appeal found Haddad Dodge waived its right to compel arbitration because it began litigating the case and waited until six months before the scheduled trial date to file its motion. The class identified in the Barnes’ lawsuit is consumers who purchased vehicles from Haddad Dodge/Kia and whose contracts do not separately itemize fees due to the DMV for license fees and registration, transfer, and titling fees. Lyle and Karen Barnes allege Haddad Dodge made improper disclosures on contracts for customers who purchased vehicles between July 21, 2006, and July 21, 2010.
If this practice happened to you at Haddad Dodge, in Bakersfield, or any other dealership in California, and you would like more information about this class action case or how the Auto Fraud Legal Center can help you, please feel free to contact Hawk Barry, either by phone at 800-466-5366, or via the contact form on the left.
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