A New Hampshire car dealership will pay $1.25 million after settling charges with the state that it tricked buyers into buying vehicles they couldn’t afford. The New Hampshire Attorney General’s Office has said that the severe financial penalty imposed on Dan O’Brien Kia at Concord is the best way to deter such conduct in the future.” I think that’s a satisfying result for the office,” Attorney General John Formella said. “That’s pretty egregious behavior.” Formella said his office has received a large number of complaints accusing Dan O’Brien Kia of being deceptive when trying to cut 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 refinancing after six months at a more affordable rate. But Formella said the program was bogus, leaving customers stuck with paying a loan they couldn’t afford. “The program was a major problem because it was very misleading to consumers,” Formella said. And the last thing we want is for a consumer trying to do the right thing for their financial situation to be tricked by a loan they can’t afford. This ultimately puts the consumer in a very difficult financial situation, and it also affects their long-term credit. The attorney general’s office said the dealership also inflated the income of potential borrowers on applications, and investigators allegedly uncovered a fake loan document in which the dealership submitted documents without customer approval. to pay $1.25 million, Dan O’Brien Kia must hire an independent compliance monitor to review and report on its business practices for five years The dealership will also be required to have audio and video recordings of all financial discussions with clients over the next five years under the terms of the consent judgment, but also by not repeating the behavior that we investigated and ultimately took the action you see here today,” Formella said. statement, an attorney for DMO Auto Acquisitions, the dealership’s parent company, said the settlement does not include any adm of wrongdoing. “DMO Auto Acquisitions has resolved all issues raised by the NH Attorney General’s office,” the statement said. “He is pleased that this matter has been resolved so that he can focus on serving his clients. The settlement acknowledges that there was no admission of wrongdoing. DMO has implemented best practices and welcomes the NH Attorney General’s oversight process in the area of registration “which he has been doing for years. DMO continues to focus on its customers and provide them with the best possible service.” The dealership will also pay compensation to two consumers who fell victim to the deceptive sales practices, Formella said.
A New Hampshire car dealership will pay $1.25 million after settling charges with the state that it tricked buyers into buying vehicles they couldn’t afford.
The New Hampshire attorney general’s office said the hefty financial penalty imposed on Dan O’Brien’s Kia at Concord was the best way to deter such conduct in the future.
“I think it’s a satisfying outcome for the office,” Attorney General John Formella said. “That’s pretty egregious behavior.”
Formella said his office has received a large number of complaints accusing Dan O’Brien Kia of being deceptive in trying to cut 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 refinancing after six months at a more affordable rate. But Formella said the scheme was bogus, forcing customers to pay a loan they could not afford.
“The program was a major problem because it was very misleading to consumers,” Formella said. And the last thing we want is for a consumer trying to do the right thing for their financial situation to be tricked by a loan they can’t afford. This ultimately puts the consumer in a very difficult financial situation, and it also affects their long-term credit.
The attorney general’s office said the dealership also inflated the income of potential borrowers on applications, and investigators allegedly uncovered a fake loan document in which the dealership submitted documents without the customer’s approval.
In addition to paying $1.25 million, Dan O’Brien Kia must 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 over the next five years.
“The purpose of the recording is to enable us to monitor the dealer’s behavior and to ensure that they are both complying with the terms of the consent judgment, but also not to repeat the behavior for which we have investigated and ultimately taken the action you see here today,” Formella said.
In a statement, an attorney for DMO Auto Acquisitions, the dealership’s parent company, said the settlement did not include any admission of wrongdoing.
“DMO Auto Acquisitions has resolved all issues raised by the NH Attorney General’s office,” the statement said. “He is pleased that this matter has been resolved so that he can focus on serving his clients. The settlement acknowledges that there was no admission of wrongdoing. DMO has implemented best practices and welcomes the NH Attorney General’s oversight process in the area of registration “which he has been doing for years. DMO continues to focus on its customers and provide them with the best possible service.”
The dealership will also pay restitution to two consumers who fell victim to the deceptive sales practices, Formella said.
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