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Court limits practices of local car dealer

June 15, 2006|Lisa King

A temporary injunction has been issued against a local car dealer, ordering the dealership to stop or change certain business practices.

The injunction was granted by Jessamine Circuit Court Judge Hunter Daugherty at the request of the office of the attorney general.

The injunction prohibits World Class Auto, located at Vince Road and U.S. 27, from doing any of the following, which they have been accused of by consumers:

â?¢ Misrepresenting financing terms and/or the certainty of financing to consumers attempting to purchase vehicles.

â?¢ Asking purchasers to sign any contract or document on which a blank space for a material term (including but not limited to price, interest rate, payment, number of payments, term or cost of credit) has not been filled in.

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â?¢ Selling a vehicle to a customer at a higher price than what was advertised, unless they have a valid reason for doing so and tell the customer early on.

The injunction also orders World Class Auto to provide a true, accurate, and complete copy of each signed document to each person obligating them to pay for a vehicle, or obligating them to any terms relating to purchase or lease of a vehicle, at the time of signing, before the person leaves the premises where the document is signed.

The injunction also stipulates that World Class Auto shall notify customers within five business days from the date of the sale of a vehicle if the financing terms cannot be obtained for any reason. Also, if a consumer must return a vehicle, World Class Auto may not charge them more than 20 cents per mile for mileage they put on the vehicle. World Class Auto also may not keep a customer's down payment if financing cannot be obtained and shall return the trade-in vehicle to the customer after the customer has paid for mileage and/or rental charges. World Class may not sell or dispose of any trade-in vehicle before the customer's financing goes through.

The injunction also states, "If any of the above provisions are employed by the defendants in a manner that is unfair, false, misleading or deceptive, the attorney general reserves the right to file a motion to amend this injunction."

The document, signed by Daugherty on June 8, said its provisions are in addition to previous temporary injunctions granted on Oct. 25, 2001, and April 17, 2006. World Class Auto is currently involved in a pending lawsuit which is in the discovery phase, according to Maryellen Mynear, litigation manager for the office of the attorney general.

Adam Hasan, general manager of World Class Auto, said that the allegations against the company are untrue.

"The reason we do not have a problem with the injunction is because these are things that we are not doing," he said. "They have been checking on us for quite a while, and they have not been able to prove any of their allegations. We have thousands of happy customers and we would not have accomplished that if what they're saying is true."

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