Submitted by Office of the Attorney General
Rokita
Bait-and-switch sales tactics, falsely advertised prices and preying on Hoosiers with subprime credit – those are the alleged misdeeds of a string of four Indianapolis used-car stores that might rank among the area’s most notoriously misnamed business enterprises. And now, after a settlement with Indiana Attorney General Todd Rokita, the business will be forced to pay back almost half a million dollars to deceived consumers.
The stores operate under the name “Honest Abe Auto Sales,” but according to a lawsuit and settlement filed by AG Rokita, they have harmed Hoosier car-buyers by engaging in dishonest and deceitful conduct.
Honest Abe Auto Sales advertised specific prices on vehicles, but when consumers with subprime credit attempted to buy the vehicles, Honest Abe raised the prices by thousands of dollars. Honest Abe then failed to disclose the price increase as a cost of credit. Over 250 consumers were affected.
“We won’t tolerate businesses breaking the law and duping Hoosiers into paying higher prices than advertised,” AG Rokita said. “Regardless of their credit scores, consumers should never encounter bait-and-switch tactics in which prices change the second customers arrive in person.”
Under the terms of the settlement, Honest Abe Auto Sales will pay restitution to affected consumers in the total amount of $470,646. Honest Abe Auto Sales is also enjoined from engaging in similar deceptive conduct in future advertising and sales.
“Here we have a business that allegedly hid extra finance fees, staggering service charges, document costs and outright price markups,” AG Rokita added. “The fact they call themselves ‘Honest Abe’ just makes the facts of this case especially rich.”
The defendant, Sycamore Companies LLC, operates stores at the following addresses: 4401 N. Keystone Ave.; 5520 W. Washington St.; 3201 W. 16th St.; and 5422 Madison Ave.
Click here to read the consent judgment.