INDIANAPOLIS –Four Indianapolis used-car stores, which might rank among the area’s most notoriously misnamed business enterprises, are accused of using bait-and-switch sales tactics, falsely advertising prices, and preying on Hoosiers with subprime credit.
The stores are now, after a settlement with Attorney General Todd Rokita, forced to pay back almost half a million dollars to deceived consumers.
The stores operate under the name “Honest Abe Auto Sales.” Still, according to a lawsuit and settlement filed by Attorney General Rokita, they have harmed Hoosier car buyers by engaging in dishonest and deceitful conduct.
Honest Abe Auto Sales advertised specific prices on vehicles, but when consumers with subprime credit attempted to buy the cars, Honest Abe raised the prices by thousands of dollars. Honest Abe then failed to disclose the price increase as a cost of credit. Over 250 consumers were affected.
“We won’t tolerate businesses breaking the law and duping Hoosiers into paying higher prices than advertised,” Attorney General Rokita said. “Regardless of their credit scores, consumers should never encounter bait-and-switch tactics in which prices change the second customers arrive in person.”
Under the settlement terms, Honest Abe Auto Sales will pay restitution to affected consumers in the amount of $470,646 and be enjoined from engaging in similar deceptive conduct in future advertising and sales.
“Here we have a business that allegedly hid extra finance fees, staggering service charges, document costs, and outright price markups,” Attorney General Rokita added. “The fact they call themselves ‘Honest Abe’ just makes the facts of this case especially rich.”
The defendant, Sycamore Companies LLC, operates stores at 4401 North Keystone Avenue, 5520 West Washington Street, 3201 West 16th Street, and 5422 Madison Avenue.
The consent judgment is attached.
