Oregon Department of Justice

Attorney General Ellen F. Rosenblum

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Rytel Enters into an Assurance of Voluntary Compliance

March 11, 1999

Attorney General Hardy Myers today announced that an Oregon used car dealership with outlets in Salem and Milwaukie and its five owners have agreed to substantially change the company's method of operation and resolve more than 100 complaints filed with the Department of Justice. Entering into an Assurance of Voluntary Compliance, which admits no law violation, are Rytel Wholesale, Inc. and partners Timothy D. Rytel of Durham, Richard R. Jones of Milwaukie, Rodney Thomas of Oregon City, Peter Mullane of West Linn and William Francis of Milwaukie.

"This comprehensive settlement not only addresses the past misconduct by Rytel, it establishes an appropriate dispute resolution mechanism for future disputes between the dealer and its customers," Myers said. "The allegations of misrepresentations made by Rytel's employees in the sale of used vehicles has been a continuing problem. The misleading activity will stop with this agreement."

Department investigators found that Rytel employees lied about the quality of the cars sold, failed to inform consumers of known material defects and did not comply with the terms in extended service contracts. A variety of other problems also were discovered.

Under the terms of the assurance, filed today in Marion County Circuit Court, the owners will, within the next 20 days, resolve all complaints filed with the Attorney General's office. By March 30, any unresolved complaints will be resolved through either non-binding mediation or binding arbitration at no cost to the consumer. Future complaints will be handled under the same terms.

Rytel also paid $15,000 to the Department of Justice's consumer education fund and agreed not to violate the Oregon Unlawful Trade Practice's Act in the future.

Consumers wanting more information about buying new and used vehicles can call the Attorney General's consumer hotline at (503) 378-4320 or (503) 229-5576 (Portland only) between the hours of 8:30 a.m. and noon, Monday through Friday.


Jan Margosian, (503) 947-4333 (media line only) jan.margosian@doj.state.or.us |
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