FTC Sues Car Dealers for Consumer Fraud

The Federal Trade Commission (FTC) sued five car dealers in four states claiming they misled consumers by promising to settle their loans, regardless of what they owed on the cars.

According to the Associated Press, the FTC said the balance of the loan is usually just combined into the new car loan. The commission also said that car dealers often engage in this type of deceptive advertising and people who owe more on their car than it is worth, are most vulnerable.

A proposed settlement suggests a ban for car dealers from creating false advertisements and misleading consumers about the facts of financing or leasing a car.

If you or someone you know has been wronged by consumer fraud, contact Sokolove Law for a free legal consultation and to find out if a consumer fraud lawyer will be able to help you.