- A dealership group in Pennsylvania appears to have gotten off with a slap on the wrist.
- The state alleged they inflated vehicle prices and manipulated credit applications.
- Despite the seriousness of the allegations, the state settled for a mere $130,000.
Between markups, hidden fees, and other questionable practices, car dealers have a lousy reputation. However, every once in a while, things get so bad that the government takes action.
That recently occurred in Pennsylvania as Attorney General Dave Sunday announced a settlement with the Rosado Group, which owns numerous dealerships in the state. This includes Dickson City Hyundai, Lehighton Kia, Performance Kia, and Milford Chrysler Dodge Jeep Ram.
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While the AG’s office didn’t delve into many specifics, they alleged the company “inflated vehicle prices, without customer knowledge, and manipulated credit applications to sell more vehicles.” The state went on to claim many of their actions were violations of trade practices and consumer protection law.
As Sunday explained, “Many customers discovered higher final costs due to the dealership disguising add-on costs that they were then reluctant to remove when discovered.” He added, “This dealership network engaged in a pattern of deceptive practices that prioritized their own sales figures over transparency to customers who deserve fair and honest treatment.”
Unfortunately, they’re getting off with a slap on the wrist. As part of a settlement agreement, the Rosado Group will pay $130,000 to the state and a bulk of that – $100,000 – is restitution to impacted consumers. The remaining $30,000 appears to be a penalty, which isn’t much of a deterrent and likely won’t discourage other dealers from rolling the dice.
Besides handing over some pocket change, the Rosado Group will hire a compliance officer to bring their “business practices into full legal compliance.” They also agreed to “stricter communication as to the condition of all vehicles sold, especially used vehicles, and will offer vehicles outside of a manufacturer warranty a 90-day 3,000-mile powertrain warranty.” Customers can also expect greater transparency in regards to financing, especially the monthly payment and term of the loan.
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