Indiana Dealership Settles AG Lawsuit
After a settlement with Indiana Attorney General Todd Rokita, a subprime auto business will be forced to pay back almost half a million dollars to consumers.
The stores operate under the name “Honest Abe Auto Sales,” but according to a lawsuit and settlement filed by Rokita, they engaged in dishonest and deceitful conduct.
Honest Abe Auto Sales advertised specific prices on vehicles, but when consumers with subprime credit attempted to buy the vehicles, Honest Abe raised the prices by thousands of dollars. Honest Abe then failed to disclose the price increase as a cost of credit. Over 250 consumers were affected.
“We won’t tolerate businesses breaking the law and duping Hoosiers into paying higher prices than advertised,” Rokita said. “Regardless of their credit scores, consumers should never encounter bait-and-switch tactics in which prices change the second customers arrive in person.”
Under the terms of the settlement, Honest Abe Auto Sales will pay restitution to affected consumers in the total amount of $470,646. Honest Abe Auto Sales is also enjoined from engaging in similar deceptive conduct in future advertising and sales.