DES MOINES, Iowa (Legal Newsline) - Iowa Attorney General Tom Miller announced an agreement on Friday with an Ottumwa used car dealer resolving allegations that the company illegally repossessed vehicles.
Under the terms of the assurance of discontinuance, Goldy's Auto and Greg Goldizen, the company's owner, agreed to forgive any outstanding balances and refund amounts consumers paid after the company repossessed vehicles without proper right to cure notices.
Iowa law requires that creditors inform consumers the first time they default on a credit transaction in a one-year period, which is known as a right to cure or cure of default. Creditors must give consumers a notice to inform them of their rights, including the right to correct the alleged default. The notice includes a description of the default and the steps the consumer must take to resolve it.
The creditor is required to give consumers 20 days to correct the default prior to repossessing a vehicle. Goldy's allegedly failed to provide consumers with proper right to cure notices.
"Repossessing vehicles without providing a proper Notice of Right to Cure is a serious violation," Miller said. "All repossessions made without providing a proper Notice of Right to Cure are illegal repossessions."
Goldy's Auto also allegedly illegally tried to persuade consumers to waive their repossession rights. Iowa law dictates that consumers are not able to agree to give up repossession rights or any rights under the Iowa Consumer Credit Code. Additionally, Goldy's Auto allegedly failed to file a required consumer credit notification with the state. Goldy's Auto has now filed that notification and paid all necessary fees and late charges.