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Auto dealer Napleton fined $10M for illegal fees and discrimination

ftc.gov

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Re: Auto dealer Napleton fined $10M for illegal fees and discrimination

#5

I wonder how this is not a felony charge?

Exactly. Their revenues are approximately half a billion dollars. The 10 million-dollar fine will do nothing. A few days in jail for the senior people would have a much bigger effect.

Re: Auto dealer Napleton fined $10M for illegal fees and discrimination

#7
>According to the complaint, the dealerships would often wait until the end of the hours-long negotiation process to sneak junk fees for add-on products and services into consumers’ purchase contracts, which often run as long as 60 pages. These junk fees were often added despite consumers specifically declining the add-ons or having confirmed prices that did not include the add-ons. In other cases, the consumers were falsely told the add-ons were free or were a requirement to purchase or finance their vehicle.

The F&I office at a car dealership is just such a terrible place. Even if they're not outright trying to cheat you like this, they flood the zone with fast talk about options and numbers, with a healthy dollop of scare tactics to get you to buy "protection plans" you don't need. It's this bizarre mix of complimenting you and insulting your intelligence -- "you seem like a smart guy so I'm sure you're looking at the extended protection plan!"

Everything else aside, buying a Tesla was refreshing because I was able to buy a new car on the internet like I'd buy a new blender on Amazon. No "the price is this if you finance and that if you don't," no push for warranties or prepaid service plans, and no obfuscation around finance rates and payments, etc. I ordered and paid for the car online, went to the store to unlock it with my phone, and drove off.

Re: Auto dealer Napleton fined $10M for illegal fees and discrimination

#8
post #7

>According to the complaint, the dealerships would often wait until the end of the hours-long negotiation process to sneak junk fees for add-on products and services into consumers’ purchase contracts, which often run as long as 60 pages. These junk fees were often added despite consumers specifically declining the add-ons or having confirmed prices that did not include the add-ons. In other cases, the consumers were…

>The F&I office at a car dealership is just such a terrible place. Even if they're not outright trying to cheat you like this,

Yeah, my reaction to that rap sheet was, "wait, that's illegal and actually enforced"? Um FTC, you've got a realllllly long list ahead of you. (Not that it's a bad thing to actually enforce this stuff.)

Re: Auto dealer Napleton fined $10M for illegal fees and discrimination

#9
These guys screwed me over in exactly this way when I bought a car from them three years ago. I raised hell when the deal I was asked to sign was for ~$2k more than we negotiated, but they wouldn’t budge. I should have walked away, but it’s hard when they spring it on you at the last second after you’ve spent hours getting to that point. Before I left their lot, I pulled the license plate frames with their name off the car and made a show of throwing them in showroom trash can. I told them they had sold a car, but I would forever tell everyone I know how shady they were.

I’m happy to see this.

Re: Auto dealer Napleton fined $10M for illegal fees and discrimination

#10
post #6

Earlier quoted context omitted.

It is a civil violation not a criminal violation.

Fraud is criminal. They should have filed criminal charges.

My original comment was misinformed. I did not realize the full scope of civil law.

According to 815 ILCS 505 there are only three defined instances that warrant a felony charge and this is only if there is a previous conviction(misdemeanor).

I'll leave it to you to show me where in the U.S.C. there is an opportunity to charge them with a felony.

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