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Dealership accused of violating Consumer Protection Law settles

On Behalf of | Sep 11, 2015 | Consumer Protection

In today’s society many people in the state of Pennsylvania rely upon motor vehicles to get from one place to another. Depending on a variety of reasons, residents could decide to either lease or buy a vehicle. Because cars are expensive it is important that when someone puts that large amount of money toward the item, they in fact receive what they are led to believe they are getting. When they don’t, it is possible that the business that sold or leased the car could be held legally responsible.

Recently, a dealership located in the state faced repercussions for violating several state and federal laws including the:

  • Consumer Protection Law
  • Pennsylvania Auto Regulations
  • Truth in Lending Act
  • Federal Trade Commission’s Used Car Rule

The dealership, which in addition to offering consumers vehicles via lease-to-own, also operates a repair shop. Despite the presence of a repair shop onsite, the dealership was accused of leasing vehicles to consumers that needed a lot of repairs. In addition, the state attorney general indicated that the lease agreement the dealership used was not in compliance with federal law.

The action was prompted by customer complaints that were logged with the local Bureau of Consumer Protection.

The case recently settled with the dealership agreeing to pay a civil penalty of $12,500, for the alleged violations. In addition, the dealership agreed that within the next 90 days, it will begin to use a lease agreement that complies with federal law.

Readers should be aware that there are laws in place to protect them from unscrupulous business practices. In these situations a lawyer that practices in the area of consumer protection may be of assistance.

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