A DISGRACED dealership has been ordered to pay out $42.6 million for taking back cars from buyers and never giving refunds.
US Auto Sales stole millions from drivers by illegally repossessing cars and overbilling customers, a judge has decided.
On Thursday, a federal judge in Georgia sided with the Consumer Financial Protection Bureau, which sued the dealership chain in August 2023.
In the suit, the bureau fired off disturbing allegations, claiming that US Auto Sales used its in-house financing company to scam drivers.
The government agency said the dealership company would use disablers to kill cars after they were purchased and then double bill unsuspecting drivers for insurance premiums.
US Auto Sales first made a huge splash in April 2023 when it abruptly closed 39 locations.
Those closures left already frustrated drivers fuming, as they couldn’t get answers on their missing money.
Some raced to the local media, like Navadia Brooks, who has not seen any progress for nearly a year and a half after her Nissan Altima was reclaimed by the seller.
“I’m keeping the faith that I will get something from a settlement,” she told ABC affiliate WSB-TV.
US District Judge Victoria Calvert has ordered the dealer to pay $25.5 million in compensatory damages, $5.8 million in restitution, $1.27 million in prejudgment interest, and a $10 million civil penalty.
She also approved an injunction that prevents the dealership from committing future CFPA violations.
US Auto Sales filed for Chapter 7 bankruptcy in August 2023, but the court will still enforce the penalties.
Bankruptcy proceedings will determine what judgment needs should be prioritized.
The Consumer Financial Protection Bureau filed the suit after drivers complained that the dealership left them stranded without rides.
CUSTOMER FURY
In July 2023, Ricky Osborne blasted the dealership for accusing him of missing payments when he had a clean record.
After dozens of closures, he had a difficult time trying to clear up the misunderstanding.
Dealership Tips
Here are some expert tips when purchasing a car from a dealership lot:
1. Set your price: Ensure you’ve calculated your monthly budget before going to the lot. You should include the car’s loan payment, insurance costs, fuel, and regular maintenance. 2. Research: Make sure you know which cars you’re interested in test driving before you reach the dealership. 3. Pre-approval: Secure financing before you go to the dealership. Dealerships may give you a better interest rate if they are competing with an outside bank. 4. Test away: Get behind the wheel before making any payments. A car purchase will be worth thousands of dollars – drivers should ensure they like the drivetrain, steering feel, and comfort of the car before taking it off the lot 5. Haggle: Drivers should always try to negotiate the price. There are so many good cars on the American market – buyers have a strong hand when negotiating price.Source: Kelley Blue Book
He spent entire afternoons on hold with the dealership and had to endure 46 calls from the disorganized company.
“It took me three weeks to get through and talk to somebody,” he told WSB at the time.
Oborne eventually found out his account no longer existed and was horrified that his warranty was useless.
He paid $4,000 to insure the car for its first 38,000 miles, but the agreement disappeared after he had driven only 18,000 miles.
Osborne contacted attorney Michael Flinn, who urged his clients not to pay US Auto Sales a cent until the situation was investigated.
Drivers have also been warned to beware of fake fees, which can increase auto sales by a massive $2,000.
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