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Important information

• Government Actions:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  FTC and people of the State of Illinois v Ed Napleton Automotive Group. Case no 1:22-cv-01690 N.D. Ill.
  

  As of April 1, 2022:

  
  

  The Federal Trade Commission and the State of Illinois are taking action against Napleton,
  a large, multistate auto dealer group based in Illinois, for sneaking
  illegal junk fees for unwanted “add-ons” onto customers’ bills and for
  discriminating against Black consumers by charging them more for
  financing. Napleton will pay $10 million to settle the lawsuit brought by the FTC and the State of Illinois, a
  record-setting monetary judgment for an FTC auto lending case.

  
  

  The complaint against North American Automotive Services, Inc. (also
  known as Ed Napleton Automotive Group) alleges that eight of its
  dealerships and the general manager of two Illinois dealerships
  illegally tacked on junk fees for unwanted “add-on” products such as
  payment insurance and paint protection. The illegal junk fees cost
  consumers hundreds or even thousands of dollars.

  
  

  According to the complaint, the dealerships would often wait until
  the end of the hours-long negotiation process to sneak junk fees for
  add-on products and services into consumers’ purchase contracts, which
  often run as long as 60 pages. These junk fees were often added despite
  consumers specifically declining the add-ons or having confirmed prices
  that did not include the add-ons. In other cases, the consumers were
  falsely told the add-ons were free or were a requirement to purchase or
  finance their vehicle.

  
  

  A survey cited in the complaint showed that 83 percent of buyers from
  the dealerships were charged junk fees for add-ons without
  authorization or as a result of deception. One consumer cited in the
  complaint reported that the dealership located in Arlington Heights,
  Ill., charged him for nearly $4,000 in add-on fees after he’d paid a
  similar amount in down payment.

  
  

  The complaint also alleges that the Napleton dealerships
  discriminated against Black consumers in connection with financing
  vehicle purchases. Napleton employees had wide latitude to increase the
  cost of a consumer’s loan by increasing the amount paid in interest or
  adding add-ons to the final contract.

  
  

  According to the complaint, Black customers at the dealerships were
  charged approximately $190 more in interest and paid $99 more for
  similar add-ons than similarly situated non-Latino White customers.

  
  

  Under the terms of the proposed settlement with the FTC and the State
  of Illinois, $9.95 million of the $10 million judgment will be used to
  provide monetary relief to consumers, and $50,000 will be paid to the
  Illinois Attorney General Court Ordered and Voluntary Compliance Payment
  Projects Fund.
  
  The settlement will also the require the defendants to establish a
  comprehensive fair lending program that, among other components, will
  cap the additional interest markup they can charge consumers. The
  settlement also requires the defendants to charge consumers only with
  express, informed consent, and prohibits them from misrepresenting the
  cost or terms to buy, lease, or finance a car, or whether a fee or
  charge is optional.

  
  

  The defendants in the case include:
  
  
  
  North Palm Motors, LLC, also doing business as Napleton’s Northlake Kia (North Palm Beach, Fla.)

  
  

  Napleton’s North Palm Auto Park, Inc., also doing business as Napleton’s Northlake Chrysler Dodge Jeep Ram (Lake Park, Fla.)

  
  

  LINK:
  https://www.ftc.gov/news-events/news/press-releases/2022/04/ftc-takes-action-against-multistate-auto-dealer-napleton-sneaking-illegal-junk-fees-bills?utm_source=govdelivery

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