FTC Announces $450,000 Settlement for Falsifying Information on Financing Applications

On July 29, 2021, the FTC announced that it had reached a $450,000 settlement with the owner and manager of a group of auto dealerships. In a complaint originally filed in 2018 in the U.S. District Court for the District of Arizona, the FTC alleged that the owner, with his group of car dealerships, deceived consumers and falsified data, such as consumers’ income and down payment information, on vehicle financing applications and engaged in prohibited advertising in violation of the Truth in Lending Act (TILA) and Consumer Leasing Act (CLA). The falsified information was aimed at ensuring the vehicles were financed, according to the FTC. Many victims of the alleged scheme were members of the Navajo Nation.

In addition to the monetary relief, the proposed settlement prohibits the defendant from misrepresenting information in financial documents related to motor vehicles and requires him to provide consumers sufficient time to review financing documents. ​