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Case ID: 4628 | Automotive | 01/26/2006
Camden, New Jersey Foulke Management Corporation, which operates a number of car dealerships, has engaged in a series of bait-and-switch sales practices. The practices were so widespread and frequent that a couple filed a class action lawsuit against Foulke. Superior Court Judge Ronald Freeman authorized class-action status for the lawsuit, and to move forward with the claims. The lawsuit could be expanded to include hundreds of car buyers, as plaintiffs, who relied on car dealerships to help them overcome poor credit histories.
The lawsuit was filed in April 2005 on behalf of Burlington County residents Bret and Renee Norton. According to the lawsuit, the Norton's went to Cherry Hill Dodge on Dec. 26, 2002, hoping to purchase an SUV. They were persuaded by a sales representative to buy a more-affordable new 2003 Dodge Neon and left the showroom with the car. Termed a "spot delivery," the couple was able to drive away with the car, with a temporary registration, while financing was pending. New Jersey law permits temporary registration only if a bona fide sale has been completed, according to the lawsuit. Bait-and-Switch On Jan. 2, 2003, according to the lawsuit, Bret Norton was told he had to pay $200 to secure the sale or provide a trade-in vehicle. Norton turned over the title to a 1987 Toyota. On Jan. 4, 2003, the lawsuit says, Cherry Hill Dodge contacted the Nortons again and told them they had to return the Neon or pay a $1,000 down payment. New paperwork to support the sale boosted the price of the vehicle from $18,994 to $20,634, and included a $1,700 service contract covering 84 months. The new agreement of sale increased the monthly payments from $393 to $497, according to the lawsuit. By Jan. 23, 2003, the Nortons still had no permanent registration for the vehicle and were notified they had to pay another $800 to Cherry Hill Dodge. When the couple was unable to make the additional payment, the car was repossessed that night, leaving the family without transportation. Norton eventually recovered his old vehicle and voided the sale. His financial loss was only one day's pay, covering the day he could not drive to his job in Pennsylvania. Foulke Management Corporation does business as Cherry Hill Dodge, Cherry Hill Subaru, Jeep, Kia, Cherry Hill Mitsubishi, Mall Chevrolet, Atlantic Chrysler Plymouth, Mount Ephraim Dodge, and Mall Chrysler Plymouth. The class would include all persons who purchased a vehicle from Foulke Management Corporation between April 1999 and April 2005 and signed agreements that permitted purchasers to take their vehicles from the lot with temporary registration documents but no approved financing. The lawsuit is filed under the state's Consumer Fraud Act, which would mandate threefold penalties and force the defendant to pay all attorney's fees and costs. It claims Foulke violated state law when it unilaterally altered terms of the agreement of sale and conditions of a credit transaction. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Automotive Cases of Interest Toyota Motor Sales U.S.A. Inc. quietly settled a class-action lawsuit that covers about 3.5 million Toyota and Lexus vehicles that may have been damaged by engine oil sludge. 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. If you fall behind on your car payments, California law allows the lender to repossess your car without any notice. A class action has been filed against Nissan Motor Acceptance Corporation on behalf of Californians who had auto loans with the company and had their autos repossessed and sold at auction, leaving them with deficiency judgments to pay even though they lost the auto. Commission-based sales positions can be lucrative--if your boss actually pays your whole commission. A class action has been filed against Landers Auto Sales, Inc. and related companies on behalf of Landers salespersons in Arkansas, Tennessee, and Mississippi, alleging that the company bilked them of their commissions, unjustly enriching itself by taking keeping money that should have been paid as commissions.
A class action has been filed against American Honda Motor Co., Inc., on behalf of purchasers of the company’s 2003 and 2004 CR-Vs, who allege that the vehicles have defective O-Ring gaskets which allow oil to leak onto the vehicles' exhaust systems, causing them to burst into flames. The defect has allegedly caused many vehicles to be totally destroyed but the company has neither issued a recall nor warned consumers. The suit alleges breaches of the California Legal Remedies Act, and the Song-Beverly Consumer Warranty Act. Many Los Angeles-area consumers shopping at Drive Time (formerly known as Ugly Ducking) for used cars usually filled out credit applications containing all of their confidential financial information, including name, social security number, employment information and home address. These consumers assumed that Drive Time would keep these credit applications under lock and key and not leak them to anyone outside of Drive Time. |
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