California AG Files Suit Against Auto Dealership Over Allegedly Fraudulent Conduct

On September 23, the California Attorney General’s Office (AG) announced that it had filed a complaint against a network of auto dealerships and its chief executive, alleging that they targeted low-income consumers with subprime credit using false advertising promising fictitiously low interest rates; made false statements on credit applications to burden these consumers with loans they could not afford; and charged consumers for expensive add-on products by telling them that they were legally required or by not disclosing that they were being charged. The AG requested that the Court permanently enjoin the defendants from any allegedly deceptive acts and requested civil penalties for each alleged violation as well as the AG’s costs.