There are many possible pitfalls involved in buying a used car, and Missouri Attorney General Chris Koster says a St. Louis auto company personifies many of them.
Koster has filed suit against McMullen Auto Credit and its operators, Nikki Darlene McMullen, James L. McMullen, Sr., and James L. McMullen, Jr., on charges of violating multiple laws. Among the charges, demanding payments from customers not due to them, and not providing titles for cars purchased by customers.
Where's the title?
According to the complaint, the McMullens failed to provide titles to customers who purchased vehicles as required by law. In some cases, says Koster, they didn't provide a title because they didn't have one. Of course, it's against the law to sell a motor vehicle for which you do not possess a title.
In some cases, they are accused to failing to provide promised warranties. There is no law requiring you to provide a warranty when you sell a car, but if you promise one as a condition of the sale, you have to provide it.
The company is also charged with misrepresenting the annual percentage rate on vehicle loans, which runs contrary to both state and federal statutes.
Koster said the company would often make a loan to a vehicle purchaser, then sell the loan on the open market. After selling the loan, he says, McMullen would continue to collect payments from the customer.
In some of these cases, says Koster, the company would threaten to repossess vehicles for lack of payment to McMullen Auto Credit when customers were making payments to the business that owned their loan.
Restraining order
The Attorney General is seeking a restraining order to prevent the McMullens from operating their business as well as restitution for customers.
“There are clear laws in Missouri to protect buyers of used vehicles,” Koster said. “When these laws are violated we will act aggressively to stop the violations and seek restitution for those harmed.”
In addition to seeking the closure of the business and restitution for consumers, Koster is also asking the court to order civil penalties of $1,000 per violation.
