Missouri Attorney General Jay Nixon is a strong consumer advocate, and this summer he took up the mantle against disreputable car dealerships who use misleading ads to do bait-and-switch financing. The suit claims that Legend Auto ran an ad campaign that lured about 650 people in to buy cars for monthly payments of $29 to $49.
According to a press release from Nixon’s office:
Nixon says Franklin [the car dealer] did not allow consumers to negotiate any of the contract terms, which called for consumers to reapply for the low-payment offer after 10 months. At that point, consumers saw their monthly payments skyrocket to full payments, going as high as $700 for some consumers. Many of them have continued making payments on the vehicles at rates that well exceed the promotional offer, while other consumers who couldn’t afford the new rates have had their vehicles repossessed for nonpayment.
Nixon is asking for consumer restitution, civil penalties, and court costs.