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Dealer Group Reaches Settlement | DrivingSales News

Dealer Group Settles With State Attorney General For $67,500

November 23, 2015 0 Comments

A dealer group in Pennsylvania has reached a settlement with the state attorney general after an investigation into the business practices at its dealerships. Lehighton Kia, Brodheadsville Chevrolet, Dickson City Hyundai and Milford Chrysler Jeep Dodge are listed among the dealerships as part of the Rosado group, which have reached a settlement as part of an investigation by Kathleen G. Kane, attorney general for the state of Pennsylvania. The settlement of $50,000 was reached without the dealer group admitting “wrongdoing,” as it relates to any of the allegations.

Among the allegations, the state attorney general’s office investigated Dickson City Hyundai and Lehighton Kia over allegations that they told customers they could refinance their vehicle after six months, in conjunction with payments higher than the consumers may have preferred. Part of the settlement reads, “Consumers who purchased vehicles based upon such representations found that they were unable to refinance as claimed … and were forced to either trade their vehicle in on a different vehicle … or the consumer had their vehicle repossessed.”

Another allegation found in the settlement was the charge that one or more dealerships in the Rosado group called consumers telling them that their current vehicle was in high demand and that a buyer is already lined up, which may have not always been true. The settlement also included one or more incident wherein a consumer was told the dealership would pay a certain price for their car and were offered much less upon arrival. The settlement goes on to list numerous incidents in which the state attorney general found practices by the dealers in the Rosado group to be either misleading or at least confusing to customers.

In all, the Rosado group agreed to pay $67,500 as part of the settlement, including the $50,000 to be divided amongst the consumers who filed a complaint with the state attorney general between Jan. 1, 2009 and August 31, 2015.

Are dealers a frequent target of civil lawsuits? What do you think prompts that legal attention?

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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