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Attorny General Mike DeWine...
‘Buy-Here-Pay-Here’
Used Car Dealers Sued
Consumer Warning Issued
(RAVENNA, Ohio) – Ohio Attorney General Mike DeWine today announced
lawsuits against Keep It Moving Auto of Cleveland and Auto Finance/Auto
Finance South of Columbus. The lawsuits charge the dealerships and
their owners with multiple violations of Ohio’s consumer laws.
“In both of these cases, we found blatant violations of consumer
financing laws,” Attorney General DeWine said. “The purchases were
often one-sided, heavily favoring the dealer and lacking required
disclosures.”
According to the Attorney General, “buy-here-pay-here” dealers are used
motor vehicle dealers that offer consumers financing directly through
the dealerships. Such dealerships often cater to lower-income consumers
and charge high interest rates.
Keep It Moving Auto, Inc. is a used motor vehicle dealer with locations
at 8941 Broadway Ave. in Cleveland and 8948 SR 14 in Streetsboro, Ohio.
After several consumers filed complaints against the business, the
Attorney General’s office discovered numerous violations with the
dealer, such as failing to notify consumers of payment due dates,
failing to notify consumers of the total cost of credit, and including
an acceleration clause for consumers who defaulted, meaning the total
amount consumers owed would be due immediately without notice to
consumers.
The Attorney General’s lawsuit, filed in the Portage County Court of
Common Pleas, charges Keep It Moving Auto, owner Ronnie Simmons Jr.,
and employee Chester Leonard with violations of Ohio’s Retail
Installment Sales Act, Consumer Sales Practices Act, Odometer Rollback
and Disclosure Act, and Certificate of Motor Vehicle Title Law.
A second lawsuit, filed in the Franklin County Court of Common Pleas,
charges Auto Finance LLC, Auto Finance South, and owners Donald G.
O’Connell and Christopher Allison with multiple violations of Ohio’s
Retail Installment Sales Act, Consumer Sales Practices Act, and
Certificate of Motor Vehicle Title Act.
In the last two years, the Ohio Attorney General’s Office has received
more than 50 complaints against Auto Finance of 3178 Cleveland Ave. or
Auto Finance South of 1414 Parsons Ave., both in Columbus. According to
the Attorney General, the business failed to give consumers proper
disclosures about their financing and failed to obtain certificates of
title in the time required by law, among other violations.
In both lawsuits, the Attorney General seeks injunctive relief, civil
penalties, and consumer restitution.
“Consumers need to understand their full financial obligations when
buying from a buy-here-pay-here dealer,” DeWine said. “In some cases,
consumers’ vehicles are repossessed within days or weeks of the
purchase because the dealer didn’t clearly disclose when their payments
were due.”
DeWine offers consumers the following tips:
Get everything in writing. Take your time to read the contract
When financing, ask about payment schedules. Make sure you understand
when the payments are due and obtain a receipt each time you make a
payment. Find out the total amount you will pay for the car if you
finance.
Make certain all parts of the contract are completed. Do not sign a
contract that has blank spaces for finance or other terms.
Research a dealership’s reputation. Check with the Ohio Attorney
General’s Office and the Better Business Bureau before doing business
with a dealership.
Watch for “auto refinancing” scams. The Federal Trade Commission
recently took action against businesses that made false promises to
lower consumers’ auto loan payments. Ohioan should be wary of
businesses that make such promises.
Consumers who believe they have been treated unfairly should file a
complaint with the Ohio Attorney General’s Office at
www.OhioAttorneyGeneral.gov or by calling 800-282-0515.
Copies of the lawsuits against Keep It Moving and Auto Finance LLC can
be found on the Ohio Attorney General’s website.
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