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North Carolina Dealership Faces Class Action Lawsuit

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Case ID: 4595 | Automotive | 01/12/2006

North Carolina car dealership Alan Vester is now facing a class-action lawsuit, alleging unfair and deceptive trade practices, negligence, fraud and other violations of state law.

The lawsuit, filed late last month, claims Alan Vester dealerships have been using these practices to get financing for customers who may not have qualified, and it says the practice has been going on for the past four years, involving 90 percent of the chain's vehicles.

One allegation in the 36-page lawsuit is falsified down payments. According to the suit, Vester customers put down no money, yet their contracts and bills of sale said otherwise. Another allegation is straw purchases, where a person's name is on the contract and their identity is used to get financing, but they are not making the payments on the car. Another claim on the suit is falsifying and inflating customers' income in order to secure financing.


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