Indiana Attorney General Todd Rokita’s office has announced a series of legal actions against several car dealerships in the state. These dealerships are being accused of engaging in deceptive business practices, which have had a negative impact on consumers.
The office has filed lawsuits to address the concerns of Indiana residents who claim to have been deceived when purchasing used vehicles. These individuals allege that they encountered problems such as missing titles or receiving vehicles with salvage titles that are not deemed roadworthy in the state.
Indiana consumers should receive what they pay for, according to Rokita. He is determined to take legal action against car dealers who engage in deceitful practices or fail to fulfill their obligations to buyers. Deceptive behavior not only harms consumers but also damages the reputation of the majority of Indiana car dealers who operate with integrity.
The lawsuits target various dealerships and revolve around different allegations.
Several car dealerships have been implicated in various forms of misconduct, according to the legal filings. The businesses in question include Cars R Us, MG Motors, Merliot Auto Sales, Phoenix Motors, Redelman’s Deals on Wheels, and W. Main Auto Sales.
MG Motors and W. Main Auto Sales are both accused of selling vehicles without providing the required titles. In particular, MG Motors failed to deliver titles for 17 vehicles, while W. Main Auto Sales neglected to provide titles for 22 cars.
Merliot Auto Sales stands accused of selling 17 vehicles that carry salvage title brands. These brands signify that the vehicles have undergone previous damage to an extent that renders them unfit for road use in Indiana. As a result, these vehicles are not legally allowed to be driven on state roads, leaving buyers with cars that are essentially unusable.
According to reports, Cars R Us has supposedly agreed to cover the outstanding loan balance on a customer’s trade-in vehicle as part of their new car purchase.
Unfortunately, the dealership did not uphold their end of the agreement, which has resulted in the consumer being burdened with two unpaid loans. One loan is for the trade-in vehicle, while the other is for the newly purchased car.
Phoenix Motors is currently under scrutiny for allegations pertaining to the sale of two vehicles to customers that were not actually owned by the dealership. In these instances, the dealership is being accused of repossessing the cars, even after the customers had already paid for them in full. Consequently, the affected consumers are left in a distressing situation where they have neither their hard-earned money nor the vehicles they believed they rightfully owned.
Redelman’s Deals on Wheels is currently facing scrutiny for its ongoing sale of vehicles, even after losing its Indiana dealership license in December 2023. Despite the revocation of their license, the company apparently continued to sell cars without the necessary legal authorization.
According to Rokita’s office, the attorney general is pursuing several remedies in the lawsuits. These remedies include seeking injunctive relief, restitution for affected consumers, civil penalties, and the recovery of legal costs.
If you think you have been a victim of similar deceptive practices, we encourage you to file a complaint with the Indiana Attorney General’s office. You can do this by visiting their website.
Summary of lawsuits:
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- Merliot Auto Sales (Indianapolis): Sold 17 vehicles with salvage titles.
- Cars R Us LLC (Indianapolis): Failed to pay off consumer trade-in loans as agreed.
- Phoenix Motors (Indianapolis): Sold two vehicles it did not own, later reclaiming them.
- W. Main Auto Sales (Greenfield): Failed to deliver 22 titles.
- MG Motors (Peru, now closed): Failed to deliver 17 titles.
- Redelman’s Deals on Wheels (Greensburg): Continued selling cars after losing its dealer license in Dec. 2023.