A nationwide network of vehicle dealerships, including seven listed locally in the Valencia Auto Center, reached a $650,000 settlement for statewide consumer protection claims, according to an L.A. County District Attorney’s Office news release issued Wednesday.
District Attorney Nathan J. Hochman said the complaint filed in January stemmed from the dealerships’ failure to file ownership paperwork in a timely manner after a sale as required by state law.
Used car dealers must submit to the DMV an application to transfer registration to a buyer, according to the complaint, which notes that the deadlines are “intended to protect the interests of consumers in receiving paperwork memorializing their legal ownership of recently purchased used vehicles in a timely manner.”
The complaint listed seven corporations tied to “Auto Nation subsidiaries,” including: MINI of Valencia; AutoNation Chrysler Dodge Jeep Ram Valencia; AutoNation Ford Valencia; Valencia BMW; AutoNation Honda Valencia; AutoNation Chevrolet Valencia; and AutoNation Hyundai Valencia. It was part of a multicounty settlement.
Under a judgment signed by Santa Clara County Superior Court Judge William J. Monahan, AutoNation dealerships were ordered to pay $450,000 in civil penalties, $150,000 in investigative costs, and $50,000 to support statewide consumer protection efforts, according to Hochman’s statement.
AutoNation’s corporate office in Florida did not immediately respond to a request for comment on Wednesday.
“Californians who buy a used car have a legal right to own the car they purchased without the stress of not knowing if or when they will receive title and registration,” Hochman said in the release. “These laws exist to protect consumers from companies that take hard-earned money from consumers without upholding their end of the deal. The Los Angeles County District Attorney’s Office will not tolerate any excuses for breaking consumer protection laws. I thank my office’s Consumer Protection Division for their diligent work on this case, and our district attorney counterparts across California for their partnership in protecting Californians.”
AutoNation is one of the largest automotive retailers in the United States, with more than 300 dealerships and other facilities in at least 20 states, including California.
