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Agent group fines FTC $3 million on fees, discrimination


Image for article titled FTC Paying Agent Group with $3.38 million due to discrimination, excessive fees

Picture: Passport Auto Group

One Maryland-based dealer will pay $3.38 million to the Federal Trade Commission, in a lawsuit that will be used Refund Illegal fees are charged for it Black and Latino customers, also discriminated against, Automotive News report.

Automotive Passport Group made up of nine dealers based in the Washington DC metro area. The The group is known for advertising low prices on used vehicles. However, cars rarely ship at that asking price.

The passport will add to the bogus fees that the agents assume the customer has to pay. A lot of “vehicle-mandated” fees are simply created by the dealer. Are from complaint:

For example, Marlow Heights’ Passport Nissan advertised a pre-certified 2018 Nissan Rogue for $24,050. However, it later charged buyers $2,390 in fees, mostly required for improvements and certification. As a result, the buyer must pay at least $2,390 more than the advertised price to buy the car. In another case, Passport Mazda advertised a certified used 2016 CX-5 for $19,900, but then charged the buyer $695.

Many of these fees are also covered by Passport used discriminatory practice – charge Black and Latino customer interest as an extra. Medium, The lawsuit alleges that Passport charged more of these price increases to Black and Latino customers than to white customers. The FTC says that over a three-year period from August 20August 17 and 2020, Black customers are charged about $291 more in interest; Latino customers are charged approx $235) other. The FTC also found that Passport charges a fee Black customer maximum mark allowed 47% more often than white consumers – and Latino customers will see the signsincreased by 38 percent.

The FTC didn’t have it. ItSDrepair person Bureau of Consumer Protection said in a statement, “The Commission is continuing to crack down on junk fees and discriminatory practices that harm Black and Latino consumers.” And that’s what the FTC means, when the settlement ends with Passport is expected to pay $3.4 million for affected customers. Passport is also required to establish a fair and secure lending program agents are not allowed to supplement financial support, and at the same time Passport ban dealer from misrepresenting vehicle cost terms.

Although Passport agreed to pay the fine, the agency group still denied all allegations The FTC took advantage to combat it. Answer Automotive News, The agency group said the charging was an isolated incident involving only “a group of three employees and those employees were no longer members of the organization”. Yeah, okay.

Passport also disagrees with the FTC saying its agents engaged in discrimination saying that the allegation is based on “an unreliable approach to guessing the borrower’s race” that… doesn’t make much sense. The tokens seem to favor the FTC on this one, because it’s not the first time the agency has had to intervene. Passports for sale practice. Clear, participating agent sent false recall notice for customers to entice them to visit the dealership back in 2018.

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