Dealers and other automotive business owners once again generated more complaints than any other industry in Consumer Federation of America’s latest top 10 list.
The Consumer Financial Protection Bureau has received more than 677,000 consumer complaints as of August 1, according to the bureau’s monthly consumer complaints snapshot. The biggest increase was in credit reporting complaints.
The New Jersey Division of Consumer Affairs and AutoSource Group, a used-car dealership, have settled a lawsuit filed by the regulator earlier this year. The dealership was accused of failing to disclose the condition of its cars, among other things.
At the CFPB’s semi-annual report to Congress Wednesday, the bureau’s director praised Honda Finance for setting limitations on dealers’ ability to mark up interest rates on auto loans. But he also fielded questions about whether the bureau is overstepping its jurisdiction.
A Massachusetts dealership is seeking a name change after a video of its employees harassing a pizza delivery man went viral.
The FBI is offering $20,000 for the arrest of a New Jersey dealer who has reportedly fled the country after more than 75 people filed complaints against him.
Charges were filed against the owner and an employee of F&R Auto Sales after a customer claimed they threatened her. The dealership first made headlines in January when a video of its employees harassing a pizza delivery man went viral.
The used-car dealer is accused of selling vehicles with mechanical defects, charging illegal fees and repossessing vehicles without the required legal notices. Twenty-two formal complaints were made against the dealer by the time the suit was filed.
A new report shows financial institutions aren’t the only ones calling for more transparency from the CFPB. Consumers are also asking the bureau to be more more open about its activities.
As part of a plea bargain for failing to give $1.2 million in sales tax to the state, the New Jersey dealer will pay restitution and will never again own, work at or consult for a dealership in the state.
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