| NEWARK
– The Attorney General’s Office
and Division of Consumer Affairs have sued
a company operating car dealerships in Camden
County, alleging the company violated the
New Jersey Consumer Fraud Act and related
regulations as well as a 2001 settlement
agreement with the State.
Foulke Management Corporation, owned by
Charles W. Foulke Jr., does business as
“Cherry Hill Triplex” and operates
Cherry Hill Dodge, Cherry Hill Jeep Eagle,
Cherry Hill Kia, Cherry Hill Mitsubishi
and Mt. Ephraim Chrysler/Dodge. Among other
things, Foulke Management Corporation engaged
in a marketing campaign with the advertising
pitches “$8,000 GUARANTEED FOR YOUR
TRADE,” “no credit check”
and “you instantly qualify, regardless
of your credit.”
The State’s complaint, filed in Superior
Court in Camden County, alleges that Foulke
Management Corporation violated the Consumer
Fraud Act, Motor Vehicle Advertising Regulations,
Used Car Lemon Law and Used Car Lemon Law
Regulations as well as the provisions of
the Assurance of Voluntary Compliance (“AVC”)
entered into with Consumer Affairs in April
2001.
“This
company allegedly advertised great deals
that, in reality, were not available at
its dealerships,” Attorney General
Zulima V. Farber said. “This was a
typical bait and switch operation. We will
not tolerate such deceptive practices.”
Consumer
Affairs has received more than 100 consumer
complaints from Cherry Hill Triplex customers
to date.
The
alleged violations committed by Foulke Management
Corporation at its dealerships include:
-
Not honoring a “guaranteed”
ad offer of $8,000 for each trade-in
vehicle;
-
Advertising that a consumer would qualify
for credit, then failing to provide
credit to the consumer;
-
Using “bait and switch”
pricing practices by planning to sell
motor vehicles at a price higher than
the advertised price, failing to honor
the advertised price and advertising
a motor vehicle that was not for sale;
-
Failing to honor the advertised sales
and/or lease price of a motor vehicle;\
-
Misrepresenting the lowest available
Annual Percentage Rate (APR) on consumer
loans;
-
Failing to disclose that the motor vehicle
had previously been damaged and that
substantial repair or body work had
been performed;
-
Failing to disclose to consumers prior
to purchase or lease that a motor vehicle
had been used as a rental vehicle;
-
Failing to disclose, adjacent to the
motor vehicle’s advertised price,
that the price includes deductions for
a manufacturer’s rebate and/or
dealer’s discount;
-
Otherwise using small print, graphic
illustrations and location to obscure
material facts in its advertisements;
-
Failing to maintain copies of applicable
advertisements within 180 days of a
sale or lease transaction; and
-
Failing to submit the required Used
Car Lemon Law fees and documentation.
In 2001, under the Assurance of Voluntary
Compliance with Consumer Affairs, the company
agreed to pay a $40,000 penalty and pledged
to operate lawfully.
“These
car dealerships promised to take the high
road in dealing with customers but the volume
of complaints we’ve received tell
another story,” said Kimberly Ricketts,
Consumer Affairs Director. “We expect
an open and honest transaction when a consumer
spends thousands of dollars on a new or
used vehicle.”
The State is seeking enhanced civil penalties
because of Foulke Management Corporation’s
alleged violation of the 2001 AVC. In addition
to penalties, the State is seeking restitution
for consumers, reimbursement of its costs
and fees and appointment of a receiver.
Consumers may file complaints against Foulke
Management Corporation by calling Consumer
Affairs at 800-242-5846
(within New Jersey) or at 973-504-6200.
Complaint forms are available online at
www.NJConsumerAffairs.com
Deputy Attorney General Brian M. Brennan
is representing the State in this matter.
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