These practices increased the cost of an already substantial purchase, almost always made by taking out an expensive loan. Paul Blanco also tricked customers into paying thousands of dollars for extra add-on products, such as service contracts and GAP insurance, by telling customers that these add-ons were required by law, or by simply concealing the extra charge. This allowed the company to boost their profits through improperly financed sales and increased the risk that the consumers would be saddled with loans that they could not afford. The lawsuit charges Paul Blanco with making false statements on credit applications, including by deceiving lenders about the value of vehicles and the consumer’s ability to repay the loans. Today’s action is about protecting our families from deception and unlawful practices that swindle these dollars away, leading to unaffordable debt.” Working families make every dollar count. “Far from a good car company, Paul Blanco’s abhorrent conduct put vulnerable families at risk, through deceitful advertising and illegal sales and lending practices. “A car is one of the largest, and most important purchases for many families, allowing people to get to work, school, and connect to their communities,” said Attorney General Becerra. Paul Blanco’s deceitful and unlawful conduct put these families at risk. For many of these consumers, a vehicle is a necessity and can be the most expensive one-time purchase they ever make. Paul Blanco targets vulnerable predominantly low-income consumers with subprime credit. The company operates a network of seven dealership locations in California and mostly sells used vehicles. These practices include false advertising regarding credit and discount programs, making false statements on credit applications, and deceiving customers regarding add-on products and additional charges. "A car is one of the largest, and most important purchases for many families, allowing people to get to work, school, and connect to their communities," Becerra stated in a press release, claiming Blanco's conduct "put vulnerable families at risk, through deceitful advertising and illegal sales and lending practices.SACRAMENTO – California Attorney General Xavier Becerra filed a lawsuit in the Alameda County Superior Court against Paul Blanco’s Good Car Company, a network of motor vehicle dealerships, and its chief executive Paul Blanco (Paul Blanco) alleging that the company engaged in a variety of unlawful business practices. They claim the company also ran numerous false and deceptive advertising campaigns on television, radio and the internet promising falsely low interest rates, even for consumers who wouldn't normally qualify for such rates to lure unsuspecting consumers to their dealership. Prosecutors say this allowed the company to boost their profits through improperly financed sales and increased the risk that the consumers would be saddled with loans they could not afford.īecerra's office alleges Blanco also tricked customers into paying thousands of dollars for extra add-on products, such as service contracts and GAP insurance, by telling customers the add-ons were required by law, or by simply concealing the extra charge. The lawsuit charges Blanco with making false statements on credit applications, including by deceiving lenders about the value of vehicles and the consumer's ability to repay the loans. Paul Blanco's Good Car Company, which operates seven dealerships across the state, including one in Carson, is accused of targeting vulnerable and low-income consumers with subprime credit. LOS ANGELES (CBSLA) - The office of California's Attorney General has filed a lawsuit against a well-known network of motor vehicle dealerships, and its chief executive Paul Blanco, for allegedly engaging in illegal marketing and financing practices.
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