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Tuesday, 08 September 2015 05:28

PA Attorney General Announces Settlement with Automobile Business

Attorney General Kathleen G. Kane announced on September 2 a settlement agreement with a central Pennsylvania automobile business that allegedly leased vehicles that needed considerable amounts of repair work and used a lease agreement that did not comply with federal law. 

The business, Credit Connection Auto Sales, Inc., offers vehicles on a lease-to-own basis at its locations in Harrisburg, York and Carlisle. The Carlisle location also operates a motor vehicle repair shop. 

The settlement, filed in the form of an assurance of voluntary compliance, requires the company to pay a $12,500 civil penalty for alleged violations of the Consumer Protection Law, the Pennsylvania Auto Regulations, the Truth in Lending Act, and the Federal Trade Commission’s Used Car Rule.

Additionally, under the terms of the settlement, the company must begin using lease agreements that comply with federal law within 90 days and comply in the future with the Consumer Protection Law and the Auto Regulations.  

The Office of Attorney General's Bureau of Consumer Protection received several consumer complaints about the company, which prompted an investigation. The consumer complaints claimed:

  • Vehicles offered for lease were represented to be in good working condition, but were later found to have mechanical problems that required repair work.
  • The repair work was, at times, of a shoddy quality.
  • The various sales presentations and vehicle displays were not always consistent and referenced misleading information.  
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