Car Dealer Lawyer

Illinois Attorney General, Lisa Madigan, sued two Orland Park dealers under Illinois’ Consumer Fraud and Deceptive Business Practices Act, the Loan Advertising to Bankrupts Act, the Uniform Deceptive Trade Practices Act and the Illinois Administrative Rules on Motor Vehicle Advertising.  The complaint is based on mailers sent out by Orland Park Nissan and Infinity of Orland Park.  The mailer apparently targeted credit challenged consumers and touted a “credit amnesty event.”  The envelope also claimed that the mailer contained “important vehicle recall information.”  The AG’s office claimed that it received 26 complaints as a result of the mailer.

So why is this significant?  First, it’s another sign that AG’s are tired of the old “important recall information” hook.  (See Bill Heard)  More importantly, AG’s want to appear that they are on top of the credit crisis and are doing something about it.  Ms. Madigan stated in her press release that “[t]his lawsuit should send the message to auto dealers that my office won’t tolerate using  deceptive marketing practices to lure unsuspecting consumers into risky loans.”  I predict that you will see more suits like this spring up around the country, so pay very close attention to your mailers – especially secondary finance mailers.

Illinois Attorney General Press Release

CBS2Chicago.com

The Georgia Governor’s Office of Consumer Affairs raised new allegations against Bill Heard Enterprises.  The Governor’s Office claims that Bill Heard engaged in deceptive and misleading sales practices in violation of Georgia’s Fair Business Practices Act of 1975.  Specifically, it asserts that Bill Heard failed to pay off trades and engaged in “power booking” (overstating the equipment on vehicles to induce a lender to finance a larger amount).  Bill Heard disputes the allegations. [Read more →]

These may be my favorite commercials ever.  Not just because they are funny, but because they pretty much sum up what I love about the car business.  The people in these commercials definitely remind me of some people I worked with.

A recent article in the Suwannee Democrat reported that a bookkeeper was arrested in Florida for allegedly embezzling $100,000.  According to the police report, the bookkeeper took cash from the daily deposit over a six month period.

Last week I wrote a post called “12 Things That Keep You Awake at Night.”  One of the things that I suggested might keep you awake at night is the fear that your controller is a compulsive gambler.  That came from a case where a long-time controller had stolen money for years to support her secret gambling habit.  Whether the motivation is gambling, desperation, or just greed, a dishonest controller or bookkeeper can be a dealer’s worst nightmare.  Not only does it hurt to lose the money, but usually the bookkeeper or controller is the dealer’s most trusted employee.  

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While many dealerships are fighting for survival, two dealers in Florida are fighting each other – in court.  Earl Stewart Toyota sued Ed Morse Honda for slander in a radio ad.  He is also challenging the legality of Ed Morse’s dealer fees – a challenge that could have a widespread impact if upheld. 

What makes this case interesting is Earl Stewart himself.  As a dealer, he definitely walks to the beat of his own drummer, and he has been successful doing it.  He owns a large and successful Toyota store in South Florida, a four-time winner of Toyota’s President’s Award.  But what makes Earl Stewart different is that he does not charge “doc fees” and has been a crusader to eliminate them.  He also publishes a blog in which he counsels car buyers about deceptive trade practices. [Read more →]