Automotive News
Ford, Calif. Dealers Pay
$4.5 Million for Deceptive Leasing Practices
July 14, 2000: After a four-year
investigation, California prosecutors announced a settlement with Ford
Motor Credit and 204 Ford/Lincoln-Mercury dealers over alleged overcharges
on early lease terminations. (For more details, see the "Payoff
Packing" story in our Ford
Lease Information page.) The
settlement includes $100 in restitution for up to 36,000 California
consumers, plus over $934,000 in fines and investigative costs. Affected
consumers were to receive notices and claim forms. (7/00)
Car Dealers Caught in
Undercover Sting
May 14, 2000: KCBS-TV announced the
results of its three-month undercover investigation involving 14 new-car
dealerships across Southern California. Salespeople and managers at some
of the biggest dealers in America were caught red-handed by hidden cameras
-- lying, cheating and overcharging customers on new-car leases and
purchases. One of the dealers caught in the sting, a Chevrolet dealership
owned by AutoNation, was raided by state authorities two days before KCBS
aired the results of this investigation. The raid was conducted by 15 DMV
agents who were armed with a search warrant for contracts and records of
the dealership's new-car transactions. For details of this investigation,
see the "Car Dealers" stories in the KCBS-TV Web site.
(5/00)
More Chain Stores Caught
in KCBS Sting
Exactly one year after their
ground-breaking auto repair investigation, KCBS-TV conducted more
undercover runs at repair shops in the greater Los Angeles area. According
to the KCBS I-Team, shops from Pep Boys, Goodyear, Tuneupmasters and
Purrfect Auto recommended and/or sold repairs that were not necessary. For
details of this investigation, see the "Dirty Mechanics" stories in the KCBS-TV Web
site. (5/99)
22 States Announce Ford
Lease Investigations
The Florida Attorney General announced
that 22 states are now conducting investigations into the leasing
practices of Ford Motor Credit Company. Investigators believe that Ford
Credit may have provided training and materials that helped salespeople to
exploit consumers. Prosecutors in at least four states have caught Ford
and Lincoln-Mercury dealers cheating people on leases and some dealers
have already agreed to large settlements involving restitution and
penalties. For more details on the Ford story, see the Ford Lease Information page.
(11/98)
Ford Sued in 20 States
for Deceptive Lease Practices & Fraud
Class-action lawsuits have now been filed
against Ford Motor Credit in 20 states, alleging deceptive leasing
practices and fraud. In the lawsuits, Ford was accused of charging
undisclosed acquisition fees and of teaching deceptive sales practices to
its dealers and their salespeople. (11/98)
Chain Stores Caught
(Again) in Huge Undercover Investigation
KCBS-TV in Los Angeles conducted the largest
undercover auto repair sting that's been done in the U.S. in over a
decade. Mark Eskeldson helped KCBS design their hidden-camera
investigation, and dozens of big-name chain stores were caught
recommending and/or selling unnecessary repairs. See the Auto Repair Secrets page for more
information. (5/98)
News Media Kill Ford
Story, Collect Billions in Advertising!
Since
March of 1997, Mark Eskeldson has been exposing the deceptive leasing
practices of Ford Motor Co. and its dealers -- first in his book, Leasing
Lessons for Smart Shoppers, then on the Internet. Eskeldson
reveals the details of Ford's deceptive leasing practices and how those
practices were taught to dealers and salespeople by Ford's lease trainer.
He also reveals how Ford ignored outrageous acts of overcharging, offered
kickbacks to dealers for increasing their customers' finance charges and
concealed payoff balances from customers (which allowed dealers to
overcharge them). For more details, see the Ford Lease Information page.
A number of people have questioned our Ford story, commenting that
it surely would have received a lot of press coverage if it were true. So
here's a part of the story that we haven't reported, until now: Most of
the press and TV news organizations have refused to cover this story, even
though major parts of it have appeared on the wire services. When
prosecutors in Sacramento, California took legal action against five local
Ford dealers (for cheating 111 people on leases), the story received no
print or TV news coverage. A major TV station in Sacramento interviewed
prosecutors and some of the Ford victims, but the story was never
broadcast. According to our source, the Ford dealers convinced the station
to kill the story. (The dealers were major advertisers on that station. So
much for "news you can trust.")
Research staff and/or producers at two major TV networks have
fact-checked the Ford story and confirmed it. One producer spent several
months on the Ford story before saying, "everything checked out"
and calling it "a solid piece and a big story." But management
wouldn't allow it on the air. Researchers at another major TV network have
pitched the Ford story to management several times now, only to be turned
down again and again, even though their own people had confirmed the
story. Some of them also said that they thought it was "a big story
that should be covered." Ford and its dealers are huge advertisers on
both of these TV networks, but management claims that that has nothing to
do with their decision not to air the story.
Ford and its dealers spend over $1 billion per year on advertising,
over half of this on TV.
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