Miranda v AutoNation, Inc.
Florida AutoNation Megastores Settle Unfair Trade Practices Action for $6.9 Million
The parties have reached a tentative $6.9 million settlement in an action filed against automobile retailer AutoNation, Inc. on behalf of Floridians who allege that, from August 6, 1995, through October 31, 2000, the company failed to deliver correctly signed retail installment contracts in connection with the sale of new and used motor vehicles in violation of Florida's Motor Vehicle Retail Sales Finance and Deceptive and Unfair Trade Practices Acts. To recover under the settlement, you must submit a claim form no later than July 29, 2003.
The tentative class is specifically made up of all purchasers of automobiles from AutoNation megastores within the state of Florida from August 6, 1995, through October 31, 2000, who signed a retail installment contract, but whose copy of the contract delivered to them by the company was not signed by its representative.
The action alleges that when retail purchasers of motor vehicles attempted to finance their purchase at one of the eight AutoNation Florida Megastores, it was the company's practice to give the buyer a copy of the motor vehicle retail installment contract which was not signed at time of sale. This alleged failure to provide a copy of the installment contract which had been signed by it is itself a violation of Florida law. The action also alleges that AutoNation violated the Florida Unfair and Deceptive Trade Practices Act by knowingly selling motor vehicles to people without disclosing in writing that such vehicles had previously been titled, registered or used as a leased vehicle.
If approved by the court, the settlement will provide the following relief:
(1): Category One Relief: Upon timely submission of a properly completed claim form and the applicable retail installment contract(s) from Autonation, each class member, except those selecting Category Three or Category Four relief, will be entitled to $250 rebate certificate that the class member may use on any new or used vehicle purchased at any AutoNation dealership operated within the state of Florida. The certificate, which is nontransferable, will be valid for three years from the date of its issuance. The rebate will be paid directly by AutoNation headquarters upon receipt of a proof of purchase from an eligible class member.
(2) Category Two Relief: Each class member whose retail installment contract was rewritten, but who does not qualify or elect to receive Category Three Relief, shall, upon timely submission of a properly completed claim form and the applicable retail installment contract(s) from Autonation and any other documents necessary to establish the class member's entitlement to relief, will receive a $250 cash award in addition to a Category One rebate certificate.
(3) Category Three Relief: Each class member whose retail installment contract was rewritten not at the purchaser's request and who swears on a timely submitted claim form that one or more of the following events occurred in connection with the class member's rewritten retail installment contract, and submits copies of the contract and other documents necessary to establish the class member's entitlement to relief shall be entitled to elect the relief described below:
(a) If the price paid for a vehicle, service contract, insurance product, or any other product or service purchased in connection with the class member's vehicle purchase increased on the rewritten retail installment contract (other than increases relating to the loan, which are covered below), the class member will be entitled to receive the additional amount paid as a result of the increased price of the vehicle, product, or service, plus any corresponding additional interest charges paid. If the class member owns the vehicle and has not refinanced it at the time the settlement is finalized, the payoff will be based on the full term of the retail installment contract.
(b) If the interest rate or number of monthly payments increased on the rewritten retail installment contract, the class member will receive the additional amount paid by the class member as a result of the increased interest rate or increase in the number of monthly payments.
(c) If the amount of the down payment increased on the retail installment contract, the class member will receive any interest charges paid as a result of having borrowed any funds necessary to make the additional down payment. Documents that are sufficient to show that the class member borrowed funds to make an additional down payment and all interest charges paid on the borrowed funds must be submitted.
(d) If the class member was required to purchase any extended service contract, maintenance plan, insurance product, or any other product or service, the class member will receive 50% of the additional amount paid as a result of having been required to make that extra purchase, plus any corresponding additional interest charges that were paid. If the class member owns the vehicle and has not refinanced it at the time this agreement is executed, the payout on this option will be based on the full term of the retail installment contract.
Note that a class member whose vehicle has been repossessed by AutoNation for failure to make scheduled payments, or because of a default on any financing in connection with the purchase of the vehicle, is not eligible for Category Three Relief.
(4) Category Four Relief: Each class member whose vehicle purchase was rescinded by AutoNation and who had traded in a vehicle in connection with the purchase will be entitled to the following relief upon timely submission of a properly completed claim form and copies of the class member's retail installment contract and any other documents necessary to establish the class member's entitlement to relief: The difference, if any, between the average "Black Book" value of the traded-in vehicle and the amount that the class member received from the company for the trade-in. The Black Book referred to here is the Black Book, National Auto Research Official Used Car Market Guide, Weekly, Florida Edition. It lists the wholesale value of used cars, based on condition, mileage, equipment, and trim. More information about Black Book can be found at www.blackbookusa.com. There will be no deduction from the amount due for any per diem fees, rental charges, or other charges for the Class member's use of the vehicle that was foreclosed on.
Only one claim will be allowed for each car that triggers a Class member's participation in the settlement. In transactions involving co-buyers, only one claim will be allowed.
The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for August 8, 2003.
