Dealership forced to pay out $40m after abruptly closing 39 locations and taking back cars customers paid for

A DISGRACED shop was ordered to pay $42.6 million for returning cars to customers without ever providing a refund.

A judge has ruled that US Auto Sales stole millions from drivers by unlawfully taking back cars and overcharging them.

The Consumer Financial Protection Bureau filed a lawsuit against the dealership chain in August 2023, and a federal judge in Georgia ruled with the agency on Thursday.

The agency made alarming claims in the lawsuit that US Auto Sales defrauded drivers by using its internal financing company.

According to the government agency, the dealership company would double bill unwary drivers for insurance premiums after using disablers to destroy cars after they were purchased.

When US Auto Sales suddenly closed 39 sites in April 2023, it created a lot of buzz.

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Because they were unable to obtain information regarding their lost funds, those closures infuriated already irate drivers.

Some, like Navadia Brooks, who hasn’t seen any improvement in almost a year and a half since the seller seized her Nissan Altima, rushed to the local media.

She told ABC station WSB-TV, “I’m holding onto the hope that I will receive something from a settlement.”

The dealer has been ordered by US District Judge Victoria Calvert to pay $1.27 million in prejudgment interest, $5.8 million in restitution, $25.5 million in compensatory damages, and a $10 million civil penalty.

Additionally, she authorized an injunction that stops the dealership from violating the CFPA in the future.

The penalties will still be enforced by the court even though US Auto Sales filed for Chapter 7 bankruptcy in August 2023.

Which judgment requirements should be given priority will be decided during bankruptcy proceedings.

After drivers reported that the dealership had left them stranded without rides, the Consumer Financial Protection Bureau filed the lawsuit.

CUSTOMER FURY

Ricky Osborne chastised the dealership in July 2023 for claiming he had missed payments despite having a spotless record.

Even after dozens of closures, he struggled to resolve the misunderstanding.

Dealership Tips

When buying a car from a dealership lot, consider these professional tips:

• 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.

Kelly Blue Book is the source.

He had to put up with 46 calls from the haphazard dealership and spend whole afternoons on hold.

“It took three weeks to get through and talk to somebody,” he said at the time, according to WSB.

Oborne was shocked to learn that his warranty was worthless and that his account had been closed.

The agreement vanished after he had driven only 18,000 miles, despite the fact that he had paid $4,000 to insure the automobile for the first 38,000 miles.

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Osborne got in touch with lawyer Michael Flinn, who advised his clients to hold off on paying US Auto Sales any money until the matter was looked into.

Additionally, drivers have been alerted to the dangers of fraudulent fees, which can significantly boost car sales by $2,000.

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