NEWARK
– The Office of the Attorney General,
through its Division of Consumer Affairs,
has filed suit against an Elizabeth used motor
vehicle dealership for allegedly violating
the state’s Consumer Fraud Act, Motor
Vehicle Advertising Regulations, Automotive
Sales Regulations and Used Car Lemon Law.
Global Auto, Inc., which does business as
Auto Collection Group, allegedly misrepresented
used vehicle prices in order to attract consumers,
failed to pay off the loan balances on traded
in vehicles as promised, reported incorrect
information to a lending institution in order
to obtain loan financing for a consumer, requested
that at least one consumer sign a blank sales
document and offered for sale used vehicles
without labeling or displaying the total selling
price, among other violations.
"The
dealer used lowball pricing to lure consumers
in and then did whatever it took to make a
sale," Attorney General Anne Milgram
said. "Consumers ultimately ended up
with a bad deal, not getting their cars at
advertised prices and not knowing whether
their cars had been previously damaged."
The
Division has received eight consumer complaints
about Global Auto, Inc. to date.
"More
consumers are considering a used vehicle purchase
in these difficult economic times and we expect
those selling used vehicles to follow our
laws and regulations," said David Szuchman,
Consumer Affairs Director. "We will take
action, as we’ve done in this matter,
to protect New Jersey consumers."
The
state, in its seven count complaint filed
in State Superior Court in Union County, is
requesting consumer restitution and maximum
civil penalties against Global Auto Group,
Inc. The dealership is located at 500 South
Broad Street in Elizabeth.
The
state’s complaint alleges that the defendant
engaged in unconscionable commercial practices,
misrepresentations and knowing omissions of
material fact in violation of the Consumer
Fraud Act by:
-
Failing to honor the advertised sale price
of a used motor vehicle;
-
Failing to honor the negotiated deal concerning
the sale of a used motor vehicle;
-
Failing to provide consumers with license
plates, title and registration in a timely
manner;
-
Selling a used motor vehicle with an existing
lien;
-
Failing to refund monies paid by consumers
who never took possession of
the used motor vehicle;
-
Reporting incorrect consumer information
to a lending institution;
-
Creating a fictitious co signer for a consumer
in order to obtain financing for the
consumer’s purchase of the used motor
vehicle;
-
Charging consumers for warranty protection
but failing to secure the promised
warranty;
-
Promising, then failing, to pay off a loan
balance on a trade in motor vehicle in a
timely manner, or at all; and
-
Failing to disclose to consumers prior to
purchase prior damage and/or the prior
use of a used vehicle.
The
state also alleges that the defendant violated
the Motor Vehicle Advertising Regulations
by failing to include required disclosures
in its advertisements, among other things,
as to prior damage to and prior use of a used
vehicle.
The
state further alleges that defendant failed
to itemize documentary service fees and failed
to include the required consumer notice about
such fees on all sales documents, in violation
of the Automotive Sales Regulations. Additionally,
the state alleges that the defendant failed
to pay the required fee for each used vehicle
sold, as required by the state’s Used
Car Lemon Law and Regulations.
Global
Auto, Inc. is not affiliated with Global Auto
Mall of North Plainfield, N.J.
Consumers
who wish to file a complaint may do so online
at www.nj.gov/oag/ca/ocp/ocpform.htm
or by calling 1 800 242 5846
(toll free within N.J.) or 973 504
6200.
Deputy
Attorney General Jeffrey Koziar of the Consumer
Fraud Prosecution Section is representing
the state in this action.
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