Arkansas AG files lawsuit against used car dealer

By Bryan Cohen | Dec 18, 2013

LITTLE ROCK, Ark. (Legal Newsline) - Arkansas Attorney General Dustin McDaniel announced a lawsuit Tuesday against a Little Rock-based used car dealer who allegedly failed to provide a clear title to car buyers in addition to other deceptive practices.

Chidi Ukegbu, the operator of America's Pre-owned Selection, which was formerly known as Scales Auto, allegedly violated the Arkansas Salvage Title Act and the Arkansas Deceptive Trade Practices Act. Ukegbu allegedly sold at least eight vehicles for which he did not possess a clear title and failed to deliver title to buyers. Ukegbu also allegedly concealed the fact that a car was salvaged and illegally changed agreed-upon financing terms to raise prices.

"Those who have had the misfortune of doing business with this car dealer have told our Consumer Protection Division that they have been deceived about contract terms or stonewalled when it comes to receiving the clear title they need to register and insure a vehicle," McDaniel said. "We hope the court provides a remedy for the affected consumers. Our office will continue to take action against those who would violate Arkansas law."

On one alleged occasion, Ukegbu allegedly sold a car to a consumer without telling the buyer the car was salvaged. When the consumer was unable to obtain insurance because of the salvage title, Ukegbu allegedly repossessed the vehicle because the buyer did not obtain insurance.

Ukegbu also allegedly ignored consumer demands for refunds when it became clear he could not provide a clear title to vehicles.

The lawsuit requests that the court order Ukegbu to comply with refund requests, assess civil penalties and issue an injunction to prohibit Ukegbu from continuing the allegedly deceptive practices.

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