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Arizona Officials Sue to Shut Down Used-Car Dealership

August 04, 2008

PHOENIX — Hurricane Motor Sales in Tucson, Ariz. has come under fire from Arizona Attorney General Terry Goddard and the state's Department of Financial Institutions, according to the Arizona Daily Star. The state agencies filed suit last week to shut the dealership down for deceptive practices and selling cars without the proper finance licensing. The suit seeks to prevent Hurricane's owner and manager, John David Franklin and John David Franklin Jr., from doing business in Arizona, and demands $10,000 in restitution.

"The allegations against Hurricane amount to a virtual shopping list of fraudulent acts and deceptive practices," Goddard said. "These are very serious charges."

Arizona law requires that dealers who finance more than $25,000 worth of contracts or sell more than three vehicles on a non-cash basis obtain a special license. Officials said that, over the past two and a half years, Hurricane sold at least nine vehicles under installment contracts totaling at least $65,446.

The suit also alleges that Hurricane sold several vehicles which the dealership knew would not pass state-regulated emissions tests. Additionally, some vehicles were apparently repossessed by third-party lenders after Hurricane required the buyers to make their payments to the store, rather than the banks.

The Daily Star's report indicated that phone calls from the paper to the Franklins were not returned. The full text of the article can be read here.

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