Auto Dealers Make Right With State After Being Busted for False Credit Offers

Oregon Department of Justice staff found that all the offers of credit were false and consumers were not pre-approved for any loan, and certainly not at the offered terms.

(SALEM) - Attorney General Hardy Myers today filed agreements in Marion and Washington County Circuit Courts with two car dealerships and a direct marketing company for allegedly luring consumers onto automobile sales lots with direct mail flyers containing false offers of credit.

Named in the Assurance of Voluntary Compliance (AVC) filed in Hillsboro are Hillsboro Automotive Group, Inc., doing business as Hillsboro Chrysler Jeep, Larry Miller Chrysler Jeep and Larry Miller Hillsboro Chrysler Jeep and Larry H. Miller Corporation-Oregon, doing business as Honda of St. Johns and Larry Miller Honda of St. Johns. The AVC admits no law violation.

Direct Marketing Associates, Corp, doing business as onlinebkmanager.com and Evergreen Automotive Acceptance, and its president, John Rainey, were named in the AVC filed in Salem. The AVC admits no law violation.

“Both the dealers and marketing company were blatantly violating state and federal laws with so-called, pre-approved offers of credit that consumers never received,” Myers said.

“Unfortunately, these are the first of many sanctions to come concerning these types of misleading offers. The continuing pattern of dealers and marketers ignoring the law and using these illusory credit offers must be stopped.”

Oregon Department of Justice legal staff found that both the Hillsboro and St. Johns dealerships sent out “Vehicle Buyback Notice” direct flyers in June offering to “buy back consumers’ current vehicles at 20 percent of $4,000 over NADA book value” violating an Oregon Administrative Rule that makes it illegal to guarantee a minimum amount that will be paid for a trade-in vehicle.

Additionally, the Hillsboro dealership flyers stated that the recipients had “been pre-approved” for loans “of up to $42,988” at a 4.9% interest rate “with no money down”.

Direct Marketing Associates, Corp. of Phoenix, Arizona created and mailed flyers offering pre-approved financing for three Oregon dealerships including Ron Tonkin Chevrolet of Portland and the “Ron Tonkin Family of Dealerships,” Northwest Jeep of Beaverton and Kiefer’s Kia of Eugene.

The Ron Tonkin offers, all through DMA’s Evergreen Automotive Acceptance, touted pre-approved loans up to $23,375 only to be disclaimed in “mice-type” at the bottom of the page that the loans were only for $1,000.

Targeting consumers who had filed bankruptcy, Tonkin Chevrolet’s pre-approved offer for up to $23,375 was to those consumers’ whose “Chapter 7 or 13 was discharged or will be discharged.” It included no payments up to 45 days, 5.9 percent financing and $0 down.

The Kiefer Kia offer stated that the recipients “are approved for an auto loan of up to $19,500.00” through Financial Services. Disclaimed in “mice-type” at the bottom of the page is that the “pre-approval” is only for $1,000.

Oregon Department of Justice staff found that all the offers of credit were false and consumers were not pre-approved for any loan, and certainly not at the offered terms. It was also discovered that Evergreen Automotive Acceptance and Financial Services are not finance companies and cannot extend credit.

Another allegedly illegal practice used by the marketing company included using an exception to the federal Fair Credit Reporting Act that allows businesses to pull credit information in order to make a “firm offer of credit.”

The company used the exception to obtain the mailing lists but was not making firm offers of credit. The Northwest Jeep flyers stated that the recipients “are approved for an auto loan of up to $23,375.00” through Financial Services.

At the bottom of the flyer is a “prescreen and opt-out notice” letting the recipients know that they can stop receiving “prescreened” offers of credit. “Unfortunately, consumers were being deceived into thinking they were approved for a $23,375 loan through Financial Services, when in reality no offer of credit was being extended,” Myers explained.

Under the settlement agreement, the marketing company must comply with state and federal law when obtaining mailing lists for marketing “pre-approved” loans and the loans must be firm offers of credit through a valid finance company.

Furthermore, when making a firm offer of credit under FCRA, the marketing company flyers must include consumer information on how to stop receiving offers of credit and insurance through the mail by calling the toll-free number of 1-888-5-OPTOUT.

Oregon Department of Justice has settled or is in settlement negotiations with all three Oregon dealerships. Consumers wanting more information about Oregon law concerning pre-approved loan offers may call the Attorney General’s consumer hotline at (503) 378-4320 (Salem area only), (503) 229-5576 (Portland area only) or toll-free at 1-877-877-9392. Justice is online at www.doj.state.or.us. More information about the requirements of the Fair Credit Reporting Act can be found at the Federal Trade Commission’s website at www.ftc.gov.

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Albert Marnell October 8, 2006 11:48 pm (Pacific time)

Warriorsdad, Just because I made fun of your shameless plug is no reason to be upset. You should thank me for holding up a mirror so that you can see yourself more clearly. I had to be a little rough with someone like you because you are an elitist. In time you will be a better person and remember me.

Warriorsdad October 8, 2006 10:36 pm (Pacific time)

Go get some breath mints, I'm sure your mouth stinks like your personality. You are what you eat.

Albert Marnell October 8, 2006 8:39 am (Pacific time)

Warriorsdad, Can I have the address of the Tonkins, I want to send them a coupon for a free oil change. It expires tomorrow in Vancouver.

Warriorsdad October 6, 2006 October 7, 2006 2:02 pm (Pacific time)

It's not vanity it practicality. I need the new one now because I wore out the old one. No, I will NOT tell the Tonkins to send you money, that would be vulgar especially since you don't even like them or their car! I can't believe you are so shallow as to mention these things and not appreciate a thing.

Warriorsdad October 7, 2006 October 7, 2006 2:01 pm (Pacific time)

Warriorsdad October 7, 2006 1:32 pm (Pacific time) I want to give you all my money problems. I also want a lot of other things too. You are so cruel to think that I am a snob just because I like the Tonkins and want to buy one or two more of their cars. You are not going to get anymore personal information from me.

Warriorsdad October 7, 2006 1:32 pm (Pacific time)

I want to give you all my money problems. I also want a lot of other things too. You are so cruel to think that I am a snob just because I like the Tonkins and want to buy one or two more of their cars. You are not going to get anymore personal information from me.

Albert Marnell October 6, 2006 9:49 pm (Pacific time)

Warriorsdad, You sound too young to be a Dad. I was being sarcastic. You really think I would expect money from people that I do not even know? I do not know the Tonkins, so how can I like or dislike them? You were doing a shameless plug for the family and their business. It was so obvious. You are too young to be burning out $100,000 cars. You do not appreciate a thing. I am glad that I have healthy legs let alone a Toyota. You do not appreciate the excess affluence that has been given to you. You sound like a very spoiled and young rich kid. There is nothing wrong with being rich. But realize that it is not reality for almost 100% of the world. Most people are glad to have a roof over their heads and some simple meals. If you need $92K cars then you need a shrink because you are addicted to conspicuous consumption. It amazes me how too much money can ruin people, especially young people. You are the shallow one if you need luxury cars to feel good about yourself. Do you look down at those who do not? Money does not care who owns it. So do not be so snobish and self-important. The world is not interested in you or I, car in hand or not. We a just two out of billions of people.

Warriorsdad October 6, 2006 2:30 pm (Pacific time)

Albert Marnell October 6, 2006 12:05 pm (Pacific time)

Warriorsdad, I came from (past tense) a pretty affluent family. In 1971 I took my drivers test at age 16 in my grandfather's new Mercedes. Your plug is very obvious. I can tell you that all cars turn to shot. Alot of people who are all flash and no cash and see a car as extensions of themselves buy cars they really can't afford and would be better off donating that money to people that need help or putting it in an alternative investment. $92,000 for a glorified gold cart is not what I would call good financial sense. The overhead is ridiculous too. Who are you trying to impress? I could buy one for cash but I know that it is just a car and the novelty wears off and the birds will tell you one day what they think of your personal property on public roads, so will people that key your car because some of them are jealous or they think it is abnoxious to show off. Or someone will steal it. If the Tonkins are my friend tell them to send me a gift for $92,000. I prefer the cash. 100k for a glorified gold cart, Ich mein wirklich! My lawyer is worth a few hundred million dollars and drives modest cars with high mileage. He could buy the most expensive in the world but he knows it is superficial and vulgar. It also usually shows that you did not grow up with money. I grew up in the back seat of limos and I say, so what? I like my Toyota. I would rather give the money to a friend that is hurting or needs an interest free loan to start a business. Why not buy a 100 million dollar car? Do you think that it makes you a different person?

Warriorsdad October 6, 2006 12:25 am (Pacific time)

I like the new cars they are so shiney and they run real good too. I really want a BMW 7-- series. The 2007 models are out now and I think I'll drive up to Tonkin since they have that good offer. The Attorney General can roast weiners for all I care, the Tonkins won't care either. They've been very good to me and I want you all to know it. This family is everybodys friend. Your $92000 won't buy a better car and the Tonkins are the best people in the world.

Albert Marnell October 5, 2006 8:39 pm (Pacific time)

SO WHAT ELSE IS NEW? THIS IS NOT EXACTLY A REPUTABLE BUSINESS. CARS ARE JUST B.S. SAVE YOUR MONEY AND SPEND AS LITTLE OF IT ON AUTOS AND TRUCKS AS POSSIBLE. PUT IT IN A BANK OR FIX UP YOUR BATHROOM. BOYCOTT CARS AS MUCH AS POSSIBLE.

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Auto Dealers Make Right With State After Being Busted for False Credit Offers

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