Michigan Attorney General Mike Cox Stops Port Huron Car Dealer's Unlawful Transactions and Excessive Termination Fees
Consumers have until September 18 to file complaints
LANSING, Mich., May 23 -- Attorney General Mike Cox announced today that his office has reached an agreement with Port Huron automobile dealer Bob Fox Auto Sales following an investigation into the company's business practices initiated as a result of consumer complaints received by the Attorney General's Consumer Protection Division.
"The old adage truly applies: 'buyer beware,'" said Cox. "Consumers must be careful about entering into deals or signing documents before reading and fully understanding them. My office will continue to protect consumers from those who attempt to scam them."
The Attorney General's office contends that Bob Fox Auto Sales represented itself as a "buy here, pay here" dealership, which allowed consumers to "rent"-to-own used autos. In reality, the transactions conducted by the company were high interest loan sales that violated Michigan's Rental-Purchase Agreement Act and the Consumer Protection Act. Michigan law prohibits rent- to-own used vehicle purchases that fail to comply with the Michigan Rental- Purchase Agreement Act and applicable federal law.
Cox also contends that Bob Fox charged excessive termination fees that sometimes exceeded the vehicle purchase price.
Bob Fox Auto Sales LLC; Bob Fox, Inc; and the principals, Robert "Bob" Fox and Margo Fox have agreed to pay penalties and costs totaling $17,000 and to make refunds to certain consumers. To be eligible for refunds, consumers must file a complaint with the Consumer Protection Division by September 18, 2006.
Complaints may be filed using the complaint form on the Attorney General's website at http://www.michigan.gov/ag , or by sending a written complaint to the Attorney General's Consumer Protection Division, P.O. Box 30213, Lansing, MI 48909, or by faxing the complaint to 517-241-3771. A copy of the Agreement is also available on the website.
To date, Attorney General Mike Cox's Consumer Protection Division is responsible for more than $36 million in recoveries, including more than $13.7 million in recoveries directly to Michigan consumers. In three years in office, Cox's Consumer Protection Division has recovered more money for Michigan consumers than was collected in any three-year period of any other Attorney General.