D&M Auto Brokers and Oregon Car Connection were the subject of more than three dozen complaints since 2009
Two Portland auto dealerships that were the subject of dozens of complaints agreed to pay $10,000 each and change practices that misled consumers.
"Used car dealers need to play by the rules," said Attorney General John Kroger.
The court agreements involve D & M Auto Brokers, LLC, and NW Asset Investments LLC dba Oregon Car Connection.
The Department of Justice received 22 consumer complaints since 2010 about business practices at D & M, including that it required consumers to agree that automobiles the consumers purchased were "sold as parts only" rather than disclose serious defects.
In addition to paying $10,000, D & M agreed to make multiple changes in business practices, including posting the advertised price on a vehicle; not using the name "broker" when they're not acting on behalf of the consumer; not misrepresenting that a consumer can return or exchange a vehicle; not misrepresenting warranties; complying with internet advertising rules for dealers; not misrepresenting inspections; disclosing material defects; not selling a vehicle that is not roadworthy; not trying to finance or sell aftermarket products for vehicles sold as "parts only;" not placing "parts only" vehicles on the lot; and not directing a consumer to submit false credit applications, among others.
D & M will pay a total of $5,000 to 6 consumers and make other restitution to an additional 4 consumers. D & M could pay an additional $40,000 if it fails to comply with the agreement.
The Department of Justice has received 17 complaints about Oregon Car Connection since 2009.
In addition to paying $10,000, Oregon Car Connection is required to make multiple changes in business practices, including posting the advertised price on a vehicle; not misrepresenting the "market price" in negotiations; not misrepresenting that a service contract is a warranty; disclosing material defects; not selling a vehicle that is not roadworthy; not implying that it is in the wholesale business when it is in the retail business; providing required disclosures about financing offers; and complying with the state and federal collections laws.
Oregon Car Connection will also pay a total of $1,445 in restitution to 2 consumers. Most of the other consumer complaints have already been resolved.
Assistant Attorney General Eva Novick handled the cases for the Oregon Department of Justice.
Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, promote a positive business climate, and defend the rights of all Oregonians.
Tony Green, (503) 378-6002 firstname.lastname@example.org