The retailer is accused of everything from charging junk rates to falsifying data on loan applications
- A new lawsuit against Olathe Dodge in Kansas alleges that the company violated several consumer protection laws.
- The company is accused of charging false fees, falsifying payroll records and forcing customers to sign misleading agreements.
- Similar allegations against a nearby Kia dealer resulted in a $14.8 million judgment.
A Dodge dealer in Kansas is facing a civil lawsuit for customer fraud. The allegations include a number of questionable dealer tactics, such as: B. unnecessary charging, data manipulation and pressure on customers.
Olathe Dodge is currently defending its reputation in the face of these allegations. Meanwhile, the attorney representing the two Humphrey, Farrington & McClain (HFM) plaintiffs is encouraging other clients to come forward with their experiences.
Traders have countless ways to make profits, but many fall into the category of questionable ethics and legality. According to law firm HFM, Olathe Dodge was involved in several of these practices. It says the retailer falsely inflated customers’ income, including payroll, in order to receive loan approvals. If substantiated, it would suggest that Olathe placed its customers at risk of financial hardship from the start.
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HFM also claims the dealer added junk fees such as extended warranties, service contracts, GAP coverage, diagnostic fees and environmental plans. To hide the additional fees, the retailer apparently rushed its customers through the contracting process and required them to sign “deceptive arbitration agreements.” The company even went so far as to call Olathe Dodge a “fraud factory” due to the scale of its practices.
Although the case has not yet been heard in court, it is clear that this type of behavior is widespread in the industry. This is one reason the FTC is targeting junk fees across the country. This may also be why the same law firm involved in this lawsuit obtained a $14.8 million judgment against a Kia dealer in Lawrence, Kansas, for similar practices.
The dealer then rejects the allegations. An attorney representing Olathe Dodge provided the following statement to KMBC News:
“We are aware of complaints as part of a lawsuit. Our team at Olathe Dodge has a long history of treating our customers with care and respect. The allegations made in this lawsuit do not reflect the reality experienced by our customers. Our business is based on treating people well and creating loyal customers who keep coming back. Our approach is to resolve issues with customers as they arise. We have worked for years to build a reputation for integrity and we will defend that reputation appropriately through the appropriate forum.”
HFM is asking anyone who has purchased a car from Olathe Dodge in the last four years to come forward as they may be eligible to join the lawsuit.