Illinois Attorney General Lisa Madigan last week sued two Chicago-area auto dealers alleging deceptive direct mail practices, her office announced.
The complaint against Orland Park, IL Nissan, and Infiniti of Orland Park alleges they sent direct mail in April 2007 to local consumers describing an “exclusive credit amnesty event” and urging them to call the dealers to arrange a private appointment.
The mailers indicated recipients may have filed bankruptcy in the past but that the “amnesty” would enable them to qualify for an affordable auto loan no matter their credit rating, Madigan’s office said.
The envelopes containing the direct mailers allegedly claimed that “important vehicle recall information” was enclosed and that the consumers’ response was required.
However, no recall by the National Highway Traffic Safety Administration existed and the mailer didn’t contain recall information, according to the Illinois attorney general.
“These deceptive mailers purposely and unfairly targeted consumers who may have struggled at one time to manage their finances,” Madigan said in a press release.
Madigan’s office received 26 complaints against Orland Park Nissan and Infiniti of Orland Park and the Better Business Bureau received 18 complaints against the auto dealers, the release said.
Madigan’s complaint alleges that the deceptive mailers violated the Consumer Fraud and Deceptive Business Practices Act, the Loan Advertising to Bankrupts Act, the Uniform Deceptive Trade Practices Act and the Illinois Administrative Rules on Motor Vehicle Advertising.
Her lawsuit seeks restitution for consumers and calls for civil penalties of $50,000 per violation, an additional $50,000 statutory civil penalty and a $10,000 civil penalty for each violation committed against a person over 65 years of age, the release said.
Madigan’s suit also asks the court to order the defendants to pay the costs of the investigation and court proceedings.
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