Used car dealer settles with Iowa AG

Bryan Cohen Jul. 25, 2012, 4:21am


DES MOINES, Iowa (Legal Newsline) - Iowa Attorney General Tom Miller announced a settlement on Monday with a used car dealership that allegedly charged illegal fees.

The Des Moines-based Jones Enterprise and Repair Inc. allegedly charged illegal fees to used car buyers.

Under the terms of the assurance of discontinuance, Jones Enterprise and Repair must stop charging the fees and must pay refunds to buyers who were charged.

Jones Enterprise and Repair allegedly charged the fees to buyers who agreed to make monthly payments for vehicles. If consumers fell behind on payments, the dealer allegedly charged them fees that are not allowed under consumer credit law in Iowa.

"The dealer charged delinquency fees, notice of right to cure default fees, notice or repossession fees and collection costs, which are all against state law," Miller said. "We pursued this case to make clear to this dealer and others that this office will take action when dealers charge unlawful fees to their customers."

Under the terms of the settlement, Jones Enterprise and Repair must refund all illegal fees, totaling more than $35,000, charged to 59 consumers. The refunds will be sent to the consumers either as checks or as an offset on money owned to the dealership.

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