FTC Issues $2.6 Million Fine Against Auto Dealers, Payment Companies
The Federal Trade Commission yesterday issued more than $2.6 million in monetary judgments against four dealerships, billing service National Payment Network Inc., and loan-modification company Regency Financial Services.
The action was part of a crackdown, dubbed Operation Ruse Control, to protect car buyers against deception in automobile ads, adds-ons, financing, and auto loan-modification services. The charges related to payment programs and deceptive loan and lease advertising, according to an FTC press release.
“For most people, buying a car is one of the largest purchases they’ll make,” Jessica Rich, director of the FTC’s Bureau of Consumer Protection, said in the release. “Car ads must be truthful, loan terms must be clear, and dealer practices must be honest. That’s why our partners are working together to crack down on deceptive marketing about car sales, leasing, and financing.”
This is the second time that the FTC has taken action involving add-ons since receiving expanded authority over auto dealers under the Dodd-Frank Act. In January 2014, the FTC charged 10 auto dealers with deceptive advertising charges under Operation Steer Clear.
Learn more about risk and compliance in auto finance May 18 and 19 at the Auto Finance Risk & Compliance Summit 2015 in San Diego. Register here.
