LAWSUITS NEWS & LEGAL INFORMATION
Financing Violations
Tucson, AZ: (Feb-23-08) Arizona Attorney General Terry Goddard brought charges against D.W. Phillips LLC, doing business as Arizona Honda, alleging that the company engaged in deceptive practices to help some customers get financing when they didn't qualify. Records show that this is the second time in less than six months that the motorcycle dealership has apparently violated federal law. The suit claimed that in September 2007, three employees of Arizona Honda were indicted on charges of using customer credit application information, including names, birth dates and Social Security numbers, to obtain and use credit cards in those customers' names. The case is pending in federal court. In the recent case, the firm is suspected of helping customers get credit cards with which to purchase all-terrain vehicles or motorcycles. The state claimed that employees would write the charge was for accessories on the credit slip and then in financing paperwork would list the amount as a cash down payment or total down payment. State officials say that such practice infringed on the financial institution's lending policy, and such customers may not have qualified for regular financing, according to the state, which claims Arizona Honda did not inform customers of this.
As part of a settlement reached, Goddard has reached a $19,500 settlement between his office and D.W. Phillips LLC, resolving allegations. The $19,500 is to be paid to the Attorney General's office for attorneys' fees, and Arizona Honda is also not allowed to claim on paperwork that a charge is for accessories if no accessories were purchased, nor can the dealership note credit card purchases as cash on financing documents. Further, under the terms of the deal, Arizona Honda must also disclose the fact that a financial institution's policy forbids using a credit card for down payments and send the Attorney General's office copies of finance-related complaints it gets from customers and other agencies for the next two years. [ARIZONA DAILY STAR: HONDA FINANCING]
Published on Feb-25-08
As part of a settlement reached, Goddard has reached a $19,500 settlement between his office and D.W. Phillips LLC, resolving allegations. The $19,500 is to be paid to the Attorney General's office for attorneys' fees, and Arizona Honda is also not allowed to claim on paperwork that a charge is for accessories if no accessories were purchased, nor can the dealership note credit card purchases as cash on financing documents. Further, under the terms of the deal, Arizona Honda must also disclose the fact that a financial institution's policy forbids using a credit card for down payments and send the Attorney General's office copies of finance-related complaints it gets from customers and other agencies for the next two years. [
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