In a major legal action, Arizona Attorney General Kris Mayes and the Federal Trade Commission (FTC) have successfully pursued a $2.6 million settlement against the Coulter Motor Company, a prominent Cadillac dealer based in Arizona.
The settlement comes after allegations of deceptive pricing and discriminatory practices by Coulter Motor Company and its former general manager Gregory Depaola. These accusations led to a thorough investigation, culminating in the significant settlement agreement.
Coulter Motor Company operates Coulter Cadillac Tempe and Tempe Buick GMC, two well-known dealerships in the area. The complaint filed by Mayes and the FTC highlighted disturbing practices uncovered during a consumer survey. It was found that 92% of consumers surveyed were subjected to additional charges for add-ons they did not request or expect.
Of particular concern was the alleged discriminatory treatment of Latino consumers, who were reportedly charged an average of $1,200 more in interest and add-on fees compared to their non-Latino white counterparts. The complaint also revealed instances where advertised discounts on cars were misleading, with customers being charged extra for “market adjustments” and duplicate add-ons.
Attorney General Mayes condemned Coulter’s practices, emphasizing that deceptive and discriminatory behavior will not be tolerated in Arizona. The proposed settlement includes provisions for refunding affected consumers, implementing fair lending programs, appointing a fair lending officer, conducting employee training, and enforcing stricter policies.
The complaint asserts violations of various laws, including the FTC Act, the Equal Credit Opportunity Act, and the Arizona Consumer Fraud Act. While Coulter and Depaola did not admit to the allegations, they have agreed to the terms of the settlement.
This case serves as a reminder of the importance of protecting consumers from unfair practices and holding businesses accountable for their actions. Arizona residents can rest assured that measures are being taken to safeguard their rights in the marketplace.
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