The Federal Trade Commission is sending payments totaling more than $415,000 to 3,508 consumers who financed a car or truck at a Tate’s Auto dealership after Jan. 1, 2013, and later had the vehicle repossessed. Tate’s Auto, which operated dealerships in Arizona and New Mexico, allegedly deceived consumers about payment information and falsified information on consumers’ financing applications.
Eligible consumers will receive a check in the mail unless they specifically requested a PayPal payment. Recipients should cash checks within 90 days or redeem PayPal payments within 30 days. Consumers who have questions should call the refund administrator, JND Legal Administration, at 888-964-0009. The commission never requires people to pay money or provide account information to get a refund.
The FTC sued Tate’s Auto in 2018 for inflating consumers’ income on financing applications to third-party lenders, as well as deceiving consumers about the lease or financing terms of the vehicles they were buying. Many of Tate’s customers were citizens of the Navajo Nation, and Tate’s Auto frequently ran radio and print ads in Navajo media. The FTC settled with the auto dealerships in August 2020 and ultimately reached a settlement with the individual defendant in July 2021 that required the defendant to pay money for consumer redress.