Cedar Rapids, Iowa News, Sports, and Weather
Cedar Rapids Cars Settles Violations Over On-Lot Vehicle Financing
By Dave DeWitte, Reporter
CEDAR RAPIDS, Iowa - A Cedar Rapids used auto dealership has agreed to reimburse customers affected by past violations of the Truth in Lending Act in its on-lot financing.
Iowa Attorney General Tom Miller's Office announced a settlement with CR Cars, 2702 Sixth St. SW, on Thursday.
The violations included charging excessive delinquency fees and illegally requiring consumers to pay the dealership's attorney's fees in violation of the law.
The dealership illegally required consumers to sign documents giving the dealership the right to repossess vehicles without any legal process.
Total reimbursement to consumers will exceed $30,000, according to state officials.
CR Cars President Shannon Santee said violations took place over four years ago under a different management.
"We don't do any more financing at this business," she said. " We haven't done it for two and a half years."
Santee said the dealership agreed to correct the violations, but that the total reimbursement it had to pay consumers after all the transactions were audited was much lower, about $3,400.
The Truth in Lending Act Truth requires that a lender conspicuously disclose certain pieces of information to a borrower before extending credit, including the annual percentage rate, the term of the loan, and the total costs to the borrower.
Miller alleged that C.R. Cars violated the federal Truth in Lending Act in almost all of the documents that the Consumer Protection Division reviewed.