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2015 GNYADA Membership Directory

114

10. Be able to show customers how they can quickly thaw their frozen credit files. For customers who

have placed security freezes on their credit files, have a sheet of paper available containing the phone

numbers of all three national credit bureaus (Equifax, Experian and TransUnion) for the customer to call to

temporarily “thaw” their credit files so that you can pull a credit report on the customer. This will require

the customer to have available the PIN issued to them by the credit bureau when they first froze their

credit file. The credit bureau is not obligated to thaw the credit file without the PIN. If the customer does

not have the PIN, perhaps they can call someone at their home to get it. If the customer has their PIN,

they can “thaw” their credit file and make their credit report and credit score available to you in a matter

of minutes by simply calling the phone number for each credit bureau. It is not advisable for you to take

the customer’s PINs or offer to make the calls for the customer, although you can give the customer access

to a private phone in the dealership if necessary. If you spot deliver or sell a vehicle to a customer with

a frozen credit file, proceed with extreme caution. Consider obtaining additional information, such as a

pay stub, bank statement or other evidence of the customer’s creditworthiness, and be especially diligent

when verifying the customer’s identity. Few lenders will purchase a contract for a customer on whom they

cannot pull credit.

The New Jersey Division of Consumer Affairs reached a settlement of $1.8

million, plus consumer restitution, from eight related auto dealerships and their

owners, all for deceptive sales tactics at the dealerships.

The two principals of the dealers were accused of failing to disclose existing mechanical defects or past damage

to used cars; charging for supplemental warranties and other costly aftermarket items without customers’

consent; and failing to honor the negotiated or advertised prices for the vehicles. The two principals had settled

similar allegations in 1999.

In addition to bait-and-switch tactics and add-on sales without consent, consumers alleged that the

dealerships failed to refund deposits in a timely manner after consumers either canceled sales or were denied

financing; advertising cars without including required information such as a VIN, thus preventing consumers

from being able to check the vehicle’s history of damage and use; and failure to provide consumers with titles

and registrations in a timely manner.

In 1999, the two principals agreed to pay $450,000, including $250,000 as a compensatory fund for consumers,

to settle similar complaints by consumers. The new settlement requires a payment of $1.8 million, which

includes $1,733,059 and $66,941 to reimburse the state’s investigative costs and attorney’s fees. In addition

to that payment, the defendants must work to resolve the complaints of 45 consumers who documented their

allegations with the Division of Consumer Affairs. Finally, under the settlement, the defendants must, at their

own cost, hire a state-approved compliance monitor for two years to oversee the defendants’ compliance with

all applicable federal and state laws, rules, and regulations, as well as review the defendants’ internal policies

and procedures to make any changes, facilitate the resolution of additional consumer complaints, and provide

quarterly written reports to the New Jersey Division of Consumer Affairs.