NH car dealer to pay settlement over deceptive practices

A New Hampshire car dealership will pay $1.25 million after settling with the state over charges that it lured buyers into purchasing vehicles they couldn’t afford. the best way to determine such conduct going forward.”I think this is a satisfactory result for the office,” said Attorney General John Formella. “It’s some pretty egregious behavior.”Formella said his office received a large number of complaints accusing Dan O’Brien Kia of being deceptive when trying to close deals with customers.In one example, when customers said the terms of a loan were outside their price range, the dealership pushed a program that promised a refinance after six months to a more affordable rate. But Formella said the program was fake, leaving customers obligated to pay a loan they could not afford.”The program was a major problem, because it was very deceptive to consumers,” Formella said. “And the last thing we want is for a consumer who’s trying to do the right thing for their financial situation to be deceived into a loan that they can’t afford. That ultimately puts the consumer in a very tough financial position, and it also affects their credit long term.”The attorney general’s office said the dealership also inflated the incomes of potential borrowers on applications, and investigators allegedly uncovered a forged loan document in which the dealership submitted paperwork without the customer’s approval.In addition to paying $1.25 million, Dan O’Brien Kia has to hire an independent compliance monitor to review and report on its business practices for five years. The dealership will also need to have audio and video recordings of all financial discussions with customers for the next five years.”The whole purpose behind the recording is for us to be able to monitor the dealership’s behavior and ensure that they are both complying with the terms of the consent judgment, but also not repeating the behavior for which we investigated and ultimately took the action that you see here today,” Formella said. In a statement, an attorney for DMO Auto Acquisitions, the dealership’s parent company, said the settlement includes no admission of wrongdoing.”DMO Auto Acquisitions has addressed all issues raised by the NH Attorney General’s Office,” the statement said. “It is pleased that this matter has been resolved so it can focus on serving its customers. The settlement recognizes that there was no admission of wrongdoing. DMO has put in place best practices and welcomes the NH Attorney General’s monitoring process in the area of ​​recording transactions, something it has done for years. DMO’s focus continues to remain on its customers and providing them with the best possible service.” The dealership will also pay restitution to two consumers who were victims of the deceptive sales practices, Formella said.

A New Hampshire car dealership will pay $1.25 million after settling with the state over charges that it lured buyers into purchasing vehicles they couldn’t afford.

The New Hampshire attorney general’s office said the serious financial penalty imposed on Dan O’Brien Kia in Concord is the best way to determine such conduct going forward.

“I think this is a satisfactory result for the office,” said Attorney General John Formella. “It’s some pretty egregious behavior.”

Formella said his office received a large number of complaints accusing Dan O’Brien Kia of being deceptive when trying to close deals with customers.

In one example, when customers said the terms of a loan were outside their price range, the dealership pushed a program that promised a refinance after six months to a more affordable rate. But Formella said the program was fake, leaving customers obligated to pay a loan they could not afford.

“The program was a major problem, because it was very deceptive to consumers,” Formella said. “And the last thing we want is for a consumer who’s trying to do the right thing for their financial situation to be deceived into a loan that they can’t afford. That ultimately puts the consumer in a very tough financial position, and it also affects their long-term credit.”

The attorney general’s office said the dealership also inflated the incomes of potential borrowers on applications, and investigators allegedly uncovered a forged loan document in which the dealership submitted paperwork without the customer’s approval.

In addition to paying $1.25 million, Dan O’Brien Kia has to hire an independent compliance monitor to review and report on its business practices for five years. The dealership will also need to have audio and video recordings of all financial discussions with customers for the next five years.

“The whole purpose behind the recording is for us to be able to monitor the dealership’s behavior and ensure that they are both complying with the terms of the consent judgment, but also not repeating the behavior for which we investigated and ultimately took the action that you see here today,” Formella said.

In a statement, an attorney for DMO Auto Acquisitions, the dealership’s parent company, said the settlement includes no admission of wrongdoing.

“DMO Auto Acquisitions has addressed all issues raised by the NH Attorney General’s Office,” the statement said. “It is pleased that this matter has been resolved so it can focus on serving its customers. The settlement recognizes that there was no admission of wrongdoing. DMO has put in place best practices and welcomes the NH Attorney General’s monitoring process in the area of ​​recording transactions, something it has done for years. DMO’s focus continues to remain on its customers and providing them with the best possible service.”

The dealership will also pay restitution to two consumers who were victims of the deceptive sales practices, Formella said.

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