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NEWARK – The Division
of Consumer Affairs and Compass Dodge, Inc.
have resolved alleged used car sales and advertising
violations, with the Orange dealership agreeing
not to falsify consumer credit ratings on
loan applications in the future.
Compass Dodge will pay $50,000
in civil penalties and as reimbursement for
the state’s investigative and legal
costs, under terms of the Consent Order between
the parties. An additional $92,500 in civil
penalties is suspended but will become due
and immediately payable if Compass Dodge violates
terms of the Consent Order during the next
year.
The dealership’s future
business practices must conform to state laws
and regulations related to used motor vehicle
sales and advertising.
"We expect dealerships
to adhere to our Consumer Fraud Act, Motor
Vehicle Advertising regulations and Used Car
Lemon Law and regulations when offering used
vehicles for sale," Attorney General
Anne Milgram said. "We remain vigilant
and ready to act against those who attempt
to take advantage of consumers."
Under the Consent Order, Compass
Dodge agreed not to misrepresent consumer
credit information when submitting such information
to lending institutions for the purpose of
securing financing for motor vehicle purchases.
Compass Dodge also agreed to modify its advertising
practices to ensure compliance with all disclosure
requirements.
“Purchasing a used car
is a major expense for consumers, especially
in these difficult financial times. Accurate
consumer credit information ensures that buyers
don’t get in over their heads and obtain
loans that they cannot afford,” said
David Szuchman, Consumer Affairs Director.
During the next three years,
the Division will forward any consumer complaints
received about Compass Dodge to the dealership
for its handling. The Division must be informed
of how each complaint is resolved. Compass
Dodge agreed to submit consumer complaints
that it cannot resolve to binding arbitration.
Deputy Attorney General Jeffrey
Koziar of the Consumer Fraud Prosecution Section
represented the state in this settlement.
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