AG Sues Two Used Car Businesses

By Staff Writer July 25, 2022

The Pennsylvania Attorney General has taken legal action against two used car companies for violating consumer protection law — Carspot in Philadelphia, and JK Motor Cars in Pittsburgh.

“In Pennsylvania, demand for used cars remains high,” said AG Josh Shapiro. “These dealerships sought to cash in on that demand and make a quick buck. Consumers bought these cars only for them to break down or, in one notable case, catch fire, days after purchasing.”

The Office of Attorney General previously filed an AVC against Carspot in 2016. The 2016 AVC sought to remedy alleged violations of Auto Regulations.

An investigation into Carspot was opened in August of 2020 and found that Carspot had a pattern of deceptive and unfair business practices. The suit filed today alleges that Carspot made various misrepresentations regarding the cars they sold, and that problems revealed themselves almost immediately after consumers purchased them.

One consumer purchased a car from Carspot and within ten hours of owning the car, the check engine light came on. An hour after that, the car overheated. Within two days of purchasing the car, as the consumer was bringing the car back to Carspot, the car’s engine caught on fire and the whole car burned to the ground. A passenger in the car was brought to the hospital.

The suit alleges that Carspot also misrepresented the existence and coverage of warranties sold with their cars. Many consumers only learned later, for example, when something went wrong with their car, that they had a severely limited warranty or no warranty at all.

Additionally, Carspot failed to deliver applications for certificate of title for cars they sold to the Department of Transportation within the twenty days mandated by law. Consumers paid Carspot to handle title and registration services, but some waited months to receive the title to their new vehicle.

The Pennsylvania Office of Attorney General also filed suit today against JK Motor Cars and its managing member, Jason Kelly.

The suit alleges that JK Motor Cars and Mr. Kelly marketed, and sold unroadworthy cars and failed to disclose, prior to sale, serious problems with the cars they sold. The suit also alleges that JK Motor Cars misrepresented the cars as being sold with a “dealer warranty.” However, when issues were discovered with the cars they purchased, consumers were told that they actually purchased the car “as is” with limited third-party coverage.

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Last modified on Monday, 01 August 2022 12:15