A Concord auto dealer will pay the state $1.25 million to settle allegations of unfair and deceptive practices, including forging a customer’s name on loan paperwork, state officials announced Monday.
The settlement is the result of an extensive investigation into Dan O’Brien Kia on Manchester Street after the state received numerous consumer complaints between 2019 and 2021 from customers who said employees knowingly deceived them, according to Attorney General John Formella.
The investigation revealed that between 2019 and 2020, the sales staff promised customers that if they purchased a vehicle that was out of their price range, the dealership would help them refinance their loan after six months once their credit score improved.
“The investigation revealed that program did not actually exist and was nothing more than a carefully calculated sales pitch,” the Attorney General’s Office said in a statement.
“Customers who relied on the respondent’s assurances that they would refinance the customers’ loan after six months of timely payments were ultimately left in a contractual obligation to pay a loan that they could not afford,” the news release said.
Additionally, investigators found that sales employees increased the annual income on potential loan applications to secure financial approval and, in one instance, an employee forged a customer’s signature.
As a result of the investigation and the settlement, the dealership will be required to pay $1.25 million, reimburse the state $49,000 in legal costs, and pay restitution to two customers who were victims of deception. In addition, the dealership will have to hire an independent compliance monitor to review and report on business practices for the next five years, work closely with the Attorney General’s Office, record all financial discussions between employees and customers and implement a training and education program for all staff.