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Payment Packing of Etch Leads to Reimbursement of $829K

June 28, 2006

A California dealership has agreed to reimburse about 1,500 customers who were charged for F&I products without their knowledge, reported the Santa Monica Daily Press.

According to a court settlement with the Los Angeles District Attorney’s Office, the dealership will pay about $829,000, with the average claim being $400. Customers were charged for “theft etch” and the product appeared on the sales contract as a VT registration charge, which doesn’t exist.

Customers have also claimed that the prices they agreed to on the showroom floor were renegotiated in the finance office. According to the lawsuit, such a practice is forbidden by state law.

Criminal charges are pending against six sales representatives who were allegedly involved in the scam.

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