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Wednesday, 12 July 2017 20:58

BBB Warns About Defunct Dealer

A recently closed Missouri car dealership has been the focus of numerous consumer complaints that claim the business failed to deliver on promises made to customers and left them without vehicle titles after purchases.
The St. Louis-area Better Business Bureau is warning consumers to use caution before dealing with Eric M. Strosnider, the owner of the now-defunct The St. Peters Auto Group in O’Fallon, Mo.,
He previously owned and operated Strosnider Pre-Owned LLC, a used-car store, and Strosnider Enterprises LLC, an auto repair shop, both of which were located in O’Fallon.
Strosnider told BBB he was forced to close St. Peters Auto Group in late May after having problems with a supplier. He told BBB he would attempt to make his customers whole.
Strosnider opened St. Peters Auto Group in May 2015. BBB began to receive complaints about the business late in 2016.
The business failed to respond to 10 complaints and had an “F” rating with BBB, the lowest possible, before closing. The majority of those complaints centered on the business’s failure to issue titles and make good on promises to make repairs to vehicles.

Published in Legal
Thursday, 29 June 2017 01:04

GM Recalls SS Vehicles

General Motors LLC  is recalling 6,204 2014-2016 Chevrolet SS vehicles.
Corrosion of the connector between the electric power steering module and the torque sensor connector may cause a loss of electric power steering assist.
GM will notify owners, and dealers will inspect the steering gear assembly, replacing it as necessary, free of charge. The manufacturer has not yet provided a notification schedule. GM's number for this recall is 17248.

Published in Compliance News

A U.S. Senator has asked the Government Accountability Office to look at the Consumer Financial Protection Bureau’s indirect auto finance guidelines.

Sen. Pat Toomey sent a letter to the GAO asking the oversight agency to the CFPB overstepped its authority when it created these guidelines.

The CFPB claims the guidelines only clarify existing rules. Toomey seems to assert that the guidelines are such a broad interpretation that they create a new rule.

In that case, it would be subject to the Congressional Rule Act. Congress could nullify this rule if that’s the case.

Toomey’s office didn’t respond to a request for an interview.

Alan Kaplinsky, an attorney with Ballard Spahr, hasn’t seen the letter himself, but did read about its content in a banking trade journal and is familiar with the arguments that lead up to it.

Kaplinsky said several banks and finance companies expressed concerned about the indirect auto finance rule.

So have auto dealers, who see the rule as a way to get around their exemption in the Dodd-Frank Act that created the CFPB.

“(The CFPB) felt they could go through the backdoor by going after the banks and other companies that were providing the finance for credit auto sales,” Kaplinsky said.

Kaplinsky said there is a good change  Congress would nullify the rule if it gets that far. It has done so with 14 other regulations.

The nullification would not mean auto dealers are free to do as they please, but it could rein in the CFPB.

“It would send a message to the CFPB that they should tread very lightly in this area,” Kaplinsky said.

This is especially important since the CFPB will have a new director within the next year.

 
Published in Compliance News
Thursday, 29 September 2016 17:32

NHTSA Seeks Applications for Recall Program

The National Highway Traffic Safety Administration (NHTSA) issued a solicitation for applications for a pilot recall notification program required under the FAST Act.
The FAST Act requires that NHTSA implement a two-year pilot grant program with up to six states to evaluate the feasibility and effectiveness of a state process for informing consumers of open motor vehicle recalls at the time of motor vehicle registration. A successful program will increase awareness of motor vehicle safety defects, improving safety on a state’s roads. States have up to 60 days to submit an application for a grant.

Published in Compliance News
Thursday, 08 September 2016 14:54

Ford Recalls Vehicles with EcoBoost

Ford Motor Co. is recalling 77,502 model year 2013-15 Ford Taurus, Ford Flex, Lincoln MKS and Lincoln MKT vehicles equipped with 3.5L GTDI EcoBoost engines and 2013-15 Ford Taurus Police Interceptor vehicles.

A component within the fuel pump electric module may overheat causing a loss of electrical power to the fuel pump.

A loss of power to the fuel pump will cause the engine to stall or prevent the vehicle from starting, increasing the risk of a crash.

Ford will notify owners, and dealers will inspect the fuel PEM part number and replace the fuel PEM, as necessary, free of charge. The recall is expected to begin Sept. 12.

Ford's number for this recall is 16S31.

Published in Compliance News
Wednesday, 07 September 2016 14:39

FTC Moves Ahead with Warranty Disclosure Rules

The Federal Trade Commission has announced final amendments to its Disclosure Rule and Pre-Sale Availability Rule to give effect to the E-Warranty Act.

Under the Magnuson-Moss Warranty Act the FTC promulgated the Disclosure Rule in 1975, which provides disclosure requirements for written warranties on products that cost more than $15, specifies language for certain disclosures, and requires simple language in a single document, and the Pre-Sale Availability Rule, which describes how warrantors and sellers must provide warranty terms before a sale.

The 2015 E-Warranty Act amended the MMWA to allow warrantors to post warranty terms online, as long as they also provide a non-Internet-based method as well, and to allow certain sellers to use an electronic method to display warranty terms pre-sale, which necessitated the rule amendments.

In May, the FTC sought public comment on proposed changes to the rules. The final amendments to the Disclosure Rule define what it means for certain disclosures to appear “on the face of” a warranty posted online.

The Pre-Sale Availability Rule amendments allow warrantors to display warranty terms online and provide information to consumers to obtain those terms via non-Internet means. The amendments also allow sellers to supply pre-sale warranty terms electronically or conventionally if the warrantor has chosen to display its warranty terms online.

Published in Compliance News
Thursday, 11 August 2016 15:14

GWC Tops $400 Million in Claims Paid

GWC Warranty has successfully topped $400 million in claims paid to date.

GWC Warranty's $400 million in claims paid, combined with sister-company EasyCare's $3.1 billion, brings the APCO Holdings, Inc. claims paid total to more than $3.5 billion.

Since 2015, GWC has been designated a Bronze Level National Corporate Partner of the NIADA.

Published in Compliance News
Thursday, 11 August 2016 15:14

Feds Sue Credit Union for Repossessing Cars

The Department of Justice Civil Rights Division and the U.S. Attorney's Office for the Eastern District of Michigan filed a lawsuit to recover damages from the COPOCO Community Credit Union, alleging that it violated the Service Members Civil Relief Act (SCRA) by repossessing protected service members’ motor vehicles without obtaining the necessary court orders.

The SCRA protects the rights of service members on active duty by suspending or modifying certain civil obligations. The law prohibits repossessing a motor vehicle from a service member during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service.

The department’s complaint alleges that COPOCO’s vehicle repossession procedures did not include any process to determine customers’ military status – such as checking the Department of Defense’s database – prior to conducting repossessions without court orders.

The complaint also alleges that COPOCO illegally repossessed U.S. Army Private First Class Christian Carriveau’s car, along with his two-year-old daughter’s car seat, out of his driveway in Lacey, Wash., near Joint Base Lewis-McChord. His wife, Alyssa Carriveau, initially believed that the car had been stolen, but she subsequently learned that it had been repossessed.

Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle.

Published in Compliance News
Monday, 08 August 2016 16:15

FTC Extends Comments on Fuel Economy

The Federal Trade Commission has extended the deadline for submitting public comments on proposed changes to the Fuel Economy Guide.

Adopted in 1975, the Guide (formally, the “Guide Concerning Fuel Economy Advertising for New Automobiles”) helps advertisers avoid making unfair and deceptive claims.

On May 27, the FTC sought public comments on proposed changes to the Guide. Based on a request by the Center for Auto Safety and the Consumer Federation of America, the FTC is extending the public comment period by 30 days.

Published in Compliance News

Columbus Fair Auto Auction has developed its own compliance department.

Angela Whitt has been named the auction’s compliance manager.

Whitt will be focused on building a comprehensive program that is a unified system addressing a multitude of high impact regulations and operational contr

Published in Auctions
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