Latest OnLine Editon  Read Here

Attorney Erik Johnson and Allen Denson of Hudson Cook discuss regulatory issues at the recent National Alliance of Buy-Here, Pay-Here Dealers conference.

State Says Defunct Dealership Failed to Secure Titles

State Says Defunct Dealership Failed to Secure Titles Featured

The New York State Department of Motor Vehicles announced a consumer protection action on behalf of 48 customers against a Long Island used-car dealer.

In complaints submitted to DMV’s Division of Vehicle Safety, many consumers said they had purchased used cars from Valley Stream-based 1-800-Preowned but never received proper titles for the vehicles.  Since receiving the complaints, DMV has secured proper titles for 48 consumers from either the dealership or its floor planner with additional cases pending. 

Although the business has closed, DMV will seek a formal revocation of the facility’s business registration.  This will create a permanent record of the violations committed, which will be taken under consideration if any of the involved individuals apply to open another automotive business with DMV.

 In most cases, the dealer did not provide titles even though customers paid an additional $75 fee. 

For two consumers, 1-800-Preowned used the same vehicle to scam them both.

 The dealership failed to pay off an outstanding loan on the first customer’s trade-in vehicle, and then sold that same vehicle to a second consumer who was unaware that a lien against this vehicle remained outstanding.  

These complaints will be recommended for hearings before a DMV Administrative Law Judge, seeking restitution of about $45,000 for both the unpaid lien for the first customer and the total purchase price for the second customer.

 The dealer has been cooperative and has spent $6,000 for registration fees. The total amount of restitution recommended in hearings is about $65,000 to date.

 

 

Last modified on Friday, 10 March 2017 18:30
Rate this item
(0 votes)
Buy-Here, Pay-Here Operators Plead Guilty To Laundering Money

Buy-Here, Pay-Here Operators Plead Guilty To Laundering Money

The owners of a buy-here, pay-here operation in Louisiana recently pleaded guilty to laundering money for drug dealers.William Paul Boyter, Michael Paul Boyter and Anthony Reuben Riley, all of Shreveport,...

Auto Finance Tops $1 Trillion

Auto Finance Tops $1 Trillion

The total balance of open automotive loans climbed 11.1 percent in the first qua...

  • Men Face Charges of Defrauding Auto Creditors
    Men Face Charges of Defrauding Auto Creditors Two Pennsylvania men have been indicted by a federal grand jury on charges of conspiracy to commit wire fraud and wire fraud involving straw buys from a used-car dealership.According to…
    Written on Thursday, 15 September 2016 16:49
  • FTC Issues Revised Used Car Rule
    FTC Issues Revised Used Car Rule The Federal Trade Commission has announced final amendments to its Used Car Rule.The FTC has sought public comments on a series of proposed changes to the Rule (formally known as…
    Written on Monday, 14 November 2016 01:09
  • Dealer Pays for Targeting Spanish-Speaking Customers
    Dealer Pays for Targeting Spanish-Speaking Customers A Washington State used-car dealer will pay $250,000 for discriminating against Spanish-language speakers at its dealerships.Zein Automobiles Inc., which operates Best Bet Auto Sales and Independence Auto Center, and also…
    Written on Monday, 01 August 2016 17:56
  • CFPB Takes Action Against Title Pawn Firm
    CFPB Takes Action Against Title Pawn Firm The Consumer Financial Protection Bureau took action against TitleMax parent company TMX Finance LLC. The bureau ordered TMX Finance to stop its unlawful practices and pay a $9 million penalty.…
    Written on Tuesday, 27 September 2016 14:19
  • EX-GM Gets 2 Years For Stealing Half A Million From Store
    EX-GM Gets 2 Years For Stealing Half A Million From Store The former general manager of a Pennsylvania Chevrolet store has been sentenced in federal court to two years in jail and ordered to pay $485,800 in restitution on his conviction…
    Written on Tuesday, 12 July 2016 16:29
  • State Shuts Down Repair Shops
    State Shuts Down Repair Shops The Michigan Secretary of State has issued cease and desist orders to five unregistered auto repair shops in Shiawassee, Kent, Bay and Calhoun counties.Justice Recovery & Repair in Durand is…
    Written on Wednesday, 07 September 2016 14:39
  • Dealer Fails to Pay Sales Tax
    Dealer Fails to Pay Sales Tax Biel Semexant Jr., owner of Auction Access USA, doing business as Access 2 Auctions, has been arrested on charges that he stole more than $50,000 in sales tax he collected…
    Written on Monday, 19 September 2016 18:32
  • Buy-Here, Pay-Here Operators Plead Guilty To Laundering Money
    Buy-Here, Pay-Here Operators Plead Guilty To Laundering Money The owners of a buy-here, pay-here operation in Louisiana recently pleaded guilty to laundering money for drug dealers.William Paul Boyter, Michael Paul Boyter and Anthony Reuben Riley, all of Shreveport,…
    Written on Friday, 20 July 2012 00:00
  • State Claims Dealer Forged Documents
    State Claims Dealer Forged Documents A southeast Michigan auto dealer faces seven felony charges for allegedly forging federal import documents after Secretary of State staff became suspicious of the documents he presented.Auto dealer David S.…
    Written on Thursday, 29 September 2016 17:32
  • Former Salesman Gets Prison for Pocketing Payments
    Former Salesman Gets Prison for Pocketing Payments A former salesman was sentenced to at least 16 months in prison for stealing car payments from customers and dealerships in Nassau County. Michael McGriff pleaded guilty to charges, from…
    Written on Tuesday, 13 September 2016 14:19