Cedar Rapids Cars Settles Violations Over On-Lot Vehicle Financing

By Dave DeWitte, Reporter

Tools

By Liz Blood

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.

Conversation Guidelines

Be Kind

Don't use abusive, offensive, threatening, racist, vulgar or sexually-oriented language.
Don't attack someone personally. Keep it civil and be responsible.

Share Knowledge

Be truthful. Share what you know and what you are passionate about.
What more do you want to learn? Keep it simple.

Stay focused

Promote lively and healthy debate. Stay on topic. Ask questions and give feedback on the story's topic.

Report Trouble

Help us maintain a quality comment section by reporting comments that are offensive. If you see a comment that is offensive, or you feel violates our guidelines, simply click on the "x" to the far right of the comment to report it.


read the full guidelines here »

Commenting will be disabled on stories dealing with the following subject matter: Crime, sexual abuse, property fires, automobile accidents, Amber Alerts, Operation Quickfinds and suicides.

facebook twitter rss mobile google plus
email alerts you tube hooplanow pinterest instagram

What's On KCRG