It appears as though the New York Atty. Gen. has clamped down on a number of large, franchised dealerships. It appears as though the New York Atty. Gen. has clamped down on dealerships selling a product which is produced, distributed and presumably created by a company called Credit Forget it. In June of last year the New York State Atty. Gen. assessed a tremendously large fine against the company called Credit Forget It. It appears as though the fine assessed against this company was in excess of $14 million. The New York State Atty. Gen. apparently considered the product improper and should not be sold with an in conjunction with the financing of automobiles.
After the New York Atty. Gen. shut down this company they then proceeded against all the dealerships were selling the product. It appears as though the allegations are that the dealerships were improperly selling the product, asserting that it was free one was not and selling a product that was in essence worthless. This is my take from the articles which have been published on the Internet. The following is contained in one of the articles:
According to the lawsuit, the Koeppel dealerships used deceptive sales tactics, including charging consumers for services while concealing such charges from the consumers, or by misrepresenting that the services were free. In fact, law enforcement indicated consumers did not receive the credit repair and identity theft protection services for which they were charged.
The court papers also alleged that the Koeppel dealerships collected more than $1 million from consumers between January 2013 and November 2014 for the credit repair and identity theft protection services alone using such deceptive tactics. The suits seek a court order prohibiting the Koeppel dealerships from engaging in these kinds of practices in the future and directing them to refund all illegally obtained overcharges to consumers.
The next issue will mean what happens to the New Jersey dealerships that were selling this Credit Forget It product. Must assume that at a certain point in time the New Jersey Atty. Gen.’s office through the Department of consumer affairs will take up this issue. However, it is unknown to what extent this product sold New Jersey and New Jersey dealerships.
The article also makes reference to prior settlement and lawsuits which are filed by the New York State Atty. Gen.’s office.
Past actions by Schneiderman’s office
Officials explained these lawsuits and settlements are part of the attorney general’s initiative to end the practice that automobile dealers call “jamming,” or charging consumers for hidden purchases.
Last year, Schneiderman announced a settlement with Credit Forget, the company that purported to provide the credit repair and identity theft protection services. The attorney general also settled with a trio of dealers — Paragon Honda, Paragon Acura, and White Plains Honda, located in Queens and Westchester Counties — that Schneiderman’s office determined had also fraudulently sold these same Credit Forget It contracts.
Jamming is a terminology dealers use or an industry specific term that means placing product in the transaction without making appropriate disclosures using the appropriate or inappropriate tactics, deceptive tactics to force the sale of certain products.