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NEWARK
– Edison Motor Cars, Inc., which does
business as Brad Benson Hyundai/Mitsubishi,
has agreed to pay $65,000 and to abide by
state laws and regulations in its advertisement
and sale of used motor vehicles, under terms
of a Consent Order that resolves an investigation
conducted by the State Division of Consumer
Affairs.
Consumers
who filed complaints with the Division alleged
that the dealership, located in South Brunswick,
failed to pay off trade-in vehicles in a
timely manner and failed to disclose prior
use and/or prior damage to used vehicles
offered for sale by the dealership.
“Consumers
need to know all relevant information about
a vehicle, before signing a sales contract.
The dealership is required to disclose these
facts, as we’ve reiterated in the
terms of this settlement,” Attorney
General Paula T. Dow said.
All
existing consumer complaints have been resolved
by the dealership. For the next year, all
consumer complaints received by the Division
will be forwarded to Brad Benson Hyundai/Mitsubishi
for resolution. If the dealership and consumer
cannot resolve a complaint, the Consent
Order requires the matter to go to binding
arbitration before the Division’s
Alternative Dispute Resolution unit.
Under
the terms of the Consent Order, Brad Benson
Hyundai/Mitsubishi will pay off any loan
remaining on a trade-in vehicle within 30
days of taking possession and will use Carfax
or a similar service to discern the prior
use and/or prior damage of any used vehicle
offered for sale and will provide that information
to the consumer prior to purchase.
The
Consent Order also requires that any advertisement
for sale of a used vehicle, including internet
listings, include the Buyers Statement required
by the Motor Vehicle Advertising Regulations.
“You
can kick the tires, open the hood, check
the body for rust but, unless you are told,
you can never see that the car or truck
you want to buy was used as a rental vehicle
or damaged in a crash and repaired. Consumers
must be told about past use and prior damage,
as our Consent Order states,” said
Thomas R. Calcagni, Acting Director of the
State Division of Consumer Affairs.
Auto-related
complaints were the single largest category
of complaints received from consumers last
year. Approximately 1,800 of the 14,000
consumer complaints filed with the Division
of Consumer Affairs in 2010 dealt with automotive
issues.
Deputy
Attorneys General Cathleen O’Donnell
and Alina Wells of the Consumer Fraud Prosecution
Section represented the state in this settlement.
Investigator Murat Botas in the Office of
Consumer Protection conducted the investigation.
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