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Log Book Loans caught in "possibly criminal" sham

22.05.12

The OFT said his firms were "unfit" after borrowers were asked to hieroglyph paperwork on the spot without taking it away to read.

The tribunal judge, David Marks QC, said Shearer's leverage on the companies was "very strong if not, in many ways, largely decisive".

Thanks to a long-winded allurement, both firms are still trading. But perhaps not for long.

Some borrowers were hounded, even after Log Book sold their cars, for more cold hard cash by a supposedly separate firm of solicitors.

A typical letter from Adams Spencer & Phillips (Acceptable Services) Ltd said: "Unless payment of the full outstanding balance is received by our clients, we have ­instructions to launch legal ­proceedings against you without further notice."

But it turned out that ASP had no staff of its own, no authorisation to work as a in the red collector and was run out of the same office as Nine Regions.

For a while Nine Regions staff even made calls pretending to be from ASP.

One patron, Joanna Rybak, said: "I was terrified. They threatened me with the court, legal costs.

"I could not assume trust to that someone could pretend to be a solicitor when they were not. It's shocking."

Almost 2,700 ASP letters were sent in 17 months until this February but the artifice began in 2004.

It was a ploy to improve "collections from uncooperative or unresponsive customers", explained companionship director Paul Foster. "There was never an intent to act improperly, let alone illegally," he added.

He claimed against firms did the same and that Nine Regions didn't actually follow through with the legal threats, as if that made it any speculator.

The OFT reckoned it had "all the hallmarks of being a sham or device specifically designed to mislead and tyrannize consumers into paying" and that it was "possibly criminal".

Judge Marks dismissed the fascination earlier this month and the firm has 28 days to lodge another one or they've admitted they will go bust.

David Fisher, of the OFT's Consumer Place one's faith Group, said: "The OFT welcomes the Tribunal's decision to strike out the companies' appeals.

"The decree confirms our view that these companies are unfit to hold their consumer credit licences.

"Intentionally deceiving debtors as part of a accountability collection policy is an extremely serious matter, which calls into question a licensee's good shape.

"We expect businesses licensed by the OFT to treat all their customers, including those in arrears, absolutely and transparently.

Source: Mirror.co.uk (blog)

Bellingham car dealership denies state allegations of deceptive practices

22.05.12

In one happened in August 2007, the dealership sold a 2002 Dodge Ram quad cab pickup and provided Whatcom Academic Credit Union with a value sheet that listed an auxiliary fuel tank, a gear rack, a roll bar and a sport package, according to the complaint filed Wednesday in Whatcom County Select Court. The truck's value was listed as $19,850, but the vehicle didn't have those options and had an genuine retail value of $17,275.

"A dealer is prohibited by law from fudging or making misrepresentations in advance documents," Assistant Attorney General Mary Lobdell said in a iron release about the settlement. "As we unfortunately witnessed in the housing meltdown, misleading or erroneous documents can have terrible consequences for borrowers and lenders alike."

The allegations of such inflation, known as "power booking," happened in proceed from and summer of 2007.

The dealership's general manager, Ron Clark, deferred to a statement issued by RHLI president Dick Meyer.

"We do not have faith any customers were affected and no customer ever made a complaint to the state, as far as we know," Meyer said in the allegation released Thursday. "The allegations were for transactions that occurred long ago and related to a former staff member who was terminated from the company over three years ago after the allegations came to light."

The Attorney Diversified's Office made several other allegations, all of which RHLI denied. Among them, the office alleged the dealership advertised to Canadians "GST is unrestrictedly" when Canadians were responsible for paying their government's sales tax.

"We did have one promotion for our Canadian friends in which we relied on a assemblage that was supposed to be familiar with British Columbia's auto sale laws," Meyer said in the hand out. "It turned out that company was wrong, and so we long ago took care of every single character who attended that event."

Other allegations - also denied by RHLI - included creating a mock sense of urgency in ads, failing to clearly and conspicuously disclose the number of vehicles accessible at an advertised price, and advertising merchandise as "free" when the item actually was included in the negotiated conduit price.

"The regulations for advertising cars are unbelievably complex," Meyer said in the salvation. "We do the best we can and always have. Virtually any car dealer's ad can be fly-specked and minor, technical issues found."

Meyer emphasized the followers's commitment to its customers and explained why they didn't get into a long legal battle over the allegations.

"The payment to fight the state is astronomical," he said, "so we thought it best to settle and put this behind us so we can do what we do best clothes - sell great cars to great customers."

SEE ALLEGATIONS, RESPONSE

• Click here to scan a copy (PDF) of the complaint against RHLI, Inc., the owner of Dewey Griffin Buick-GMC-Subaru.

• Click here to skim a copy (PDF) of the consent decree against RHLI, Inc., the owner of Dewey Griffin Buick-GMC-Subaru.

• Click here to conclude from a copy (PDF) of the response from Dewey Griffin Buick-GMC-Subaru.

Source: Bellingham Herald