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Thursday, April 18, 2024

Maine AG obtains proposed judgment against used car dealer

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AUGUSTA, Maine (Legal Newsline) - Maine Attorney General Janet Mills announced a proposed consent judgment on Thursday against a used car dealer who allegedly engaged in unscrupulous business practices. Glenn Geiser and his affiliated businesses, My Maine Ride and Bumper2Bumper Inc., allegedly targeted consumers with poor credit, pressured them to buy cars that were not road worthy and failed to respond to consumer complaints. Under the terms of the proposed consent judgment, Geiser and the dealerships would be out of business until 2021 and some consumers would be able to get partial restitution for repair costs. Consumers may be eligible for forgiveness on the loan balances for repossessed cars. If the judgment is accepted, Geiser will not be able to apply for the business licenses required to operate a repair shop, car dealership or inspection station or work for one if it is operated by a member of his household until 2021. “In addition, the companies Mr. Geiser relied on to exploit consumers will not do business with him in the future," Mills said. "This should stand as a warning to any business that thinks it can cut corners and abuse Maine consumers.” Mills reached agreements with seven finance companies that provided financing to consumers who bought vehicles from Geiser. The Federal Trade Commission's Holder Rule and the Maine Consumer Credit Code subject finance companies holding consumer loans to the same claims consumers have for allegedly selling them unsafe and defective vehicles. The companies agreed to stop collection actions for consumers whose vehicles were repossessed, erase the debt, no longer provide financing for future businesses owned or operated by Geiser, and remove all negative information related to the loans from credit reports. The finance companies that reached agreements with Mills' office include Credit Acceptance Corporation, United Auto Credit Corporation, Consumer Portfolio Services Inc., Source One Financial Corporation, Mid-Atlantic Finance Company, Westlake Services LLC and Persian Acceptance Corporation. Separate civil litigation remains pending against Bangor Car Care Inc., a company owned by Geiser's mother. ##### http://www.maine.gov/ag/news/article.shtml?id=625109 http://www.maine.gov/ag/news/article.shtml?id=614259 Bangor Used Car Dealer Banned from Doing Business July 31, 2014 AUGUSTA – The Attorney General has taken action to ensure that Glenn Geiser and his affiliated businesses will be banned from doing business for seven years. “In addition,” Attorney General Mills stated, “the companies Mr. Geiser relied on to exploit consumers will not do business with him in the future. This should stand as a warning to any business that thinks it can cut corners and abuse Maine consumers.” Under the terms of the proposed consent judgment, Geiser and his used car dealerships, My Maine Ride and Bumper2Bumper, Inc., will be out of business until 2021. Additionally, some consumers will be eligible for partial restitution for repair costs and may be eligible for forgiveness of loan balances on repossessed cars. The Attorney General has reached agreements with seven finance companies that provided financing to consumers who purchased vehicles from Geiser. The Federal Trade Commission’s “Holder Rule” subjects the finance companies that hold the consumers’ loans to the same claims that consumers have against Geiser for selling them unsafe and defective vehicles. Maine’s version of the Holder Rule is in the Maine Consumer Credit Code. Geiser will not be able to apply for the business licenses that are required to operate a car dealership, repair shop, or inspection station or work for one if it is owned or operated by a member of his household for the next seven years. Geiser and his companies will also pay some restitution for consumers whose vehicles failed inspection within 30 days of purchase or became inoperable or unsafe within 90 days of purchase because of a mechanical defect that was not disclosed. The finance companies that provided financing for Geiser’s customers - Persian Acceptance Corporation, Westlake Services, LLC, Mid-Atlantic Finance Company, Source One Financial Corporation, Consumer Portfolio Services, Inc., United Auto Credit Corporation and Credit Acceptance Corporation - have cooperated with the Office of the Attorney General in resolving this case. “We appreciate the willingness of these companies to provide relief to consumers who are stuck with loan payments for cars that were essentially worthless,” said Attorney General Mills. The finance companies have agreed to stop collection actions for consumers whose vehicles were repossessed – essentially erasing the debt – and to remove all negative information relating to these loans from consumers’ credit reports. In addition, all have agreed that they will not provide financing for any future business owned or operated by Geiser. This proposed consent judgment in this civil matter relates to Glenn A. Geiser, Jr. and his two companies, Bumper2Bumper, Inc. and My Maine Ride. There is separate civil litigation continuing against Bangor Car Care, Inc., which is owned by Geiser’s mother. The agreements with the finance companies are available on-line at http://www.maine.gov/ag/news/casesofinterest.shtml. Consumers who purchased a vehicle from a Geiser dealership and have a loan with any of the seven finance companies can call 1-800-436-2131 or email consumer.mediation@maine.gov to obtain more information on how the settlements may affect them. The case was handled by Assistant Attorneys General Carolyn Silsby and Linda Conti. #### Attorney General Janet Mills Announces Lawsuit Against Used Car Dealers February 7, 2014 (AUGUSTA) Attorney General Janet T. Mills announced today that her Office has filed a lawsuit in the Penobscot County Superior Court against Glenn A. Geiser, Jr. and his dealerships – Bangor Car Care, Inc., Bumper2Bumper, Inc. and My Maine Ride – for unfair and deceptive trade practices in connection with the promotion and sale of used cars. The complaint alleges that the defendants target consumers with poor credit who need financing, pressure them to buy cars that are not road worthy and then not respond to customer complaints. The State is seeking civil penalties and a permanent injunction to bar Geiser and any entity in which he has an ownership interest from promoting, selling and/or financing used cars. “These kinds of practices give Maine businesses a bad name,” said Attorney General Mills. “Targeting vulnerable people and duping them into buying cars that are not safe not only defrauds the consumer but puts every person traveling our roads at risk. We intend to put a stop to it.”

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