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California sues car dealer for false ads, loan documents



The California Attorney General accuses a dealership of false advertising and lies in loan documents to increase the company's profits at the expense of its mostly low-income customers. >> Download the KCRA 3 app. The lawsuit by Xavier Becerra comes after two years of investigation into the Good Car Company by Paul Blanco, a dealer primarily known for selling second-hand cars throughout California and parts of Nevada, and for his numerous television and radio commercials referred to as "good car people". "For many families, this name could not be further from the truth," said Becerra, a Democrat. Late on Monday, Paul Blanco's Good Car Company published an explanation. CFO Putu Blanco said, "Our family-run business has helped hard-working Californians who can not or do not have the credit they need to buy a car from other dealers. Paul Blanco's Good Car Company has rigorous controls and a culture of compliance to ensure compliance with California regulations and protect consumers. We will vigorously fight this misguided action to demonstrate to the Attorney General and his attorneys that our customers and California consumers come first. "A 32-page complaint filed on Monday in Alameda County accuses the company of running a sophisticated system to lure customers into a dealership just to lie later about their revenue and the value of the cars they own bought to convince the lenders to approve the loans. The company paid for ads that promise customers, and could have their loans checked by phone to avoid the embarrassing experience of personally denying a loan. Call center operators had detailed scripts in which customers were asked to "please wait while I'm processing your request" to compliment them five seconds later to meet the credit criteria for "several of our lenders" manager at the call center said the operators would not process loan applications at all. Instead, the act was a trick to gather information and generate sales contacts. Once customers arrived at the dealership, Becerra said, the company would lie about how much money a potential borrower earns each year to fool lenders. A review by a financial firm revealed that of 320 receipts reported by the company's site in Fresno, more than 78% were increased by at least $ 500 per month, such as insurance or service contracts, by falsely informing customers that they are required by law , In some cases, according to Becerra, customers would not have known they would buy add-ons because employees would hide the paperwork by putting their hands over the information ̵

1; a technique that employees at the dealership call "hands-down close "designated. We talk about diligent families that count every dollar and see that their hard-earned money is supplanted by dishonest tactics that put them in priceless debt, "Becerra said, all of which, according to Becerra, is advocated by the company's management The complaint said that some employees who objected to the techniques were dismissed while others were warned against being a "snitch." During a meeting, a manager called "lessons in theft" Paul Blancos taught employees to lie to outside creditors in order to get consumers if the financing is under false pretenses and the profits of traders are increased, "says the complaint of Hunter Landerholm, a deputy attorney general who handles the case. According to Landerholm, the Attorney General's Office does not request a judge to shut down the company while the lawsuit is pending. But they ask a judge to order the company to stop applying these techniques and pay compensation plus civil sanctions. The defendants include the company and Paul Blanco himself. "It is unfortunate that the Attorney General's office was forced to file a complaint with our company (Monday)," Putu Blanco said in the statement. "We will continue to provide the Californians with much-needed services without having a high credit rating, but they must have transportation to live, work and raise a family and we look forward to our day in court." Becerra does not know how many customers are affected and urged anyone who was concerned to turn to his office.

The California Attorney General accuses a dealership of false advertising and lying on loan documents in an attempt to increase the company's profits at the expense of its mostly low-income customers.

>> Download the KCRA 3 App

Xavier Becerra's lawsuit is attributable to a two-year investigation into the Good Car Company by Paul Blanco, a retailer who specializes in selling used cars throughout California and California Nevada is known for its TV and radio advertising, which is characterized as "good" car people. "

" For many families, this name could not be further from the truth, "said Becerra, a Democrat.

Later on Monday, Paul Blanco's Good Car Company issued a statement," Putu Blanco CFO said:

" Our family-run business has helped hard-working Californians who can not afford or do not have the creditworthiness to buy a car from other dealers. "Paul Blanco's Good Car Company has rigorous controls and a culture of compliance, To ensure that California regulations are respected and consumers protected, we will vigorously combat this misguided act to demonstrate to the Attorney General and his attorneys that our customers and California consumers come first. "

A 32-page The complaint, which was filed in Alameda County on Monday, blames it s companies to operate a sophisticated system to lure customers into a dealership to later lie about their revenue and the value of the cars they bought to convince the lenders to approve the loans.

The company paid for advertisements that promised customers and had their credit checked by telephone avoiding the embarrassing experience of having a personal credit denied. Call center operators had detailed scripts that asked customers to "please wait while I was processing your application" to compliment them five seconds later on meeting the credit criteria for "several of our lenders."

But Becerra According to an unnamed manager in the call center, operators would not process the loan applications at all. Instead, the act was a trick to gather information and generate sales contacts.

Once customers arrived at the dealership, Becerra said the company would lie about how much money a potential borrower earns each year to fool lenders. A review by a financial firm revealed that out of 320 earnings reported from the company's site in Fresno, more than 78% was inflated at least $ 500 per month.

Becerra also said the company has made a lot of money selling Options worthy of add-ons such as insurance or service contracts by falsely informing customers that they are required by law. In some cases, Becerra customers did not know they were buying add-ons because employees would hide the paperwork by putting their hands over the information – a technique the trader's staff calls "hands-down close".

"We talk about hardworking families, where every dollar counts and their hard earned money is supplanted by dishonest tactics that put them in priceless debts," Becerra said.

All this, according to Becerra, is endorsed and encouraged by the company's management, including Paul Blanco himself. The complaint states that some employees who objected to the techniques were fired while others were warned, no "snitch " to be.

During a meeting, a manager briefed Paul Blanco's staff to lie to lenders "To help consumers determine whether the financing is being made on false pretexts and increasing the dealer's profits," said some of Hunter Landerholm, a deputy Attorney General, written complaint.

Landerholm said the Attorney General's Office does not ask a judge to close the company while the lawsuit is pending. But they ask a judge to order the company to stop applying these techniques and to oblige them to pay reimbursements plus civil penalties.

The defendants include the firm and Paul Blanco himself.

"It is unfortunate that the Attorney General felt this forced to file a complaint against our company (Monday)," Putu Blanco said in the statement. "We will continue to provide Californians with much-needed services without having a high credit rating, but they must have transportation to live, work and raise a family, and look forward to our day in court."

Becerra said he did not know How many customers were affected? Ask each person to contact his office.


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