Despite having settled similar allegations with the state attorney general's office, Minnesota-based Walser Automotive now faces a private consumer class-action suit alleging deceptive service-contract sales.

Lead plaintiff Jeff Wiegand accuses the dealer group of misrepresenting to him and at least 100 others that service contracts and credit insurance were required to get financing, reported Automotive News.

Two lower courts dismissed the case on the grounds that the contracts Wiegand signed when purchasing his vehicle clearly disclosed that these add-ons were optional. The dealership group was also investigated by the Minnesota attorney general's office for questionable F&I practices. But Walser settled the investigation in 2002 without admitting guilt. As a part of the settlement, Walser had to tape its F&I transactions.

Recently, the Minnesota Supreme Court decided that consumers could bring a private suit against the dealer and try to prove that they were deceived based on verbal misrepresentations.

According to Automotive News, Walser Automotive denies all charges and will argue that the settlement with the attorney general's office precludes private suits by consumers.

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