Dealer falsified people’s income so they could buy cars they can’t afford, officials say
Employees at an auto dealership in New Hampshire coaxed customers into buying cars they couldn’t afford and used other deceptive business practices, state officials said.
Following an influx of consumer complaints and a subsequent investigation by the New Hampshire Department of Justice’s Consumer Protection Antitrust Bureau, DMO Auto Acquisitions, which operates Dan O’Brien Kia in Concord, agreed to pay $1.25 million to resolve allegations of deceptive practices, according to a Dec. 19 press release from the state attorney general.
A representative for DMO did not immediately respond to McClatchy News’ request for comment.
According to state officials, DMO engaged in three kinds of duplicitous actions that violated state laws.
Beginning in 2019, dealership employees used a sales pitch known as the credit rehabilitation program, officials said. Prospective buyers were told they qualified for the program and that prompt loan payments would significantly improve their credit, which would allow them to refinance their loan to allow for smaller payments.
However, the program, “a last-ditch effort to close a sale,” never existed, according to officials, and it was nothing more than a “carefully calculated sales pitch.”
Around the same time, DMO inflated the incomes of prospective buyers on paperwork for financing approval, officials said.
Lastly, on at least one occasion, employees forged a customer’s signature on a loan application that was later submitted without their consent, officials said.
In addition to the $1.25 million settlement, DMO will pay the attorney general about $50,000 to reimburse legal costs related to the investigation, officials said. The business will also pay restitution to two former customers and employ an independent compliance monitor who will work with the attorney general’s office for the next five years.
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