Indiana attorney general files lawsuits against car dealerships for deceptive practices
Dec 20, 2024
INDIANAPOLIS (WISH) — Indiana Attorney General Todd Rokita initiated a series of legal actions targeting multiple car dealerships across the state accused of engaging in deceptive business practices that have harmed consumers, according to a release from his office.
The office said the lawsuits aim to address grievances from Indiana residents who allegedly purchased used vehicles under false pretenses, only to encounter issues such as missing titles or receiving vehicles with salvage titles that are not roadworthy in the state.
“Indiana consumers deserve to get what they pay for,” Rokita said. “We won’t hesitate to bring lawsuits against car dealers who lie or fail to honor their end of agreements with purchasers. Deceptive conduct hurts consumers, and it hurts the reputation of the vast majority of Indiana car dealers who conduct business the right way.”
The lawsuits, filed against a range of dealerships, focus on several distinct allegations.
The businesses named in the legal filings include Cars R Us, MG Motors, Merliot Auto Sales, Phoenix Motors, Redelman’s Deals on Wheels, and W. Main Auto Sales. Each dealership is accused of different forms of misconduct.
MG Motors and W. Main Auto Sales are each alleged to have sold vehicles without providing the necessary titles. Specifically, MG Motors failed to deliver titles for 17 vehicles, while W. Main Auto Sales neglected to provide titles for 22 cars.
Merliot Auto Sales is accused of selling 17 vehicles with salvage title brands, which indicates that the vehicles had been previously damaged to the point where they were deemed unsafe for road use in Indiana. Such vehicles are not legally permitted to be driven on state roads, leaving the buyers with unusable cars.
Cars R Us allegedly agreed to pay off the remaining loan balance on a consumer’s trade-in vehicle as part of the purchase of a new car.
However, the dealership failed to follow through on this agreement, leaving the consumer with two outstanding loans, one for the trade-in vehicle and another for the newly purchased car.
Phoenix Motors is facing allegations related to two vehicles sold to customers that were not owned by the dealership. After these sales, Phoenix Motors is accused of reclaiming the cars, despite the consumers having already paid for them in full, effectively leaving them without both their money and the vehicles they believed they had purchased.
Redelman’s Deals on Wheels is under scrutiny for continuing to sell vehicles after losing its Indiana dealership license in Dec. 2023. Despite the license revocation, the business allegedly persisted in selling cars without the legal authorization required.
Rokita’s office said the attorney general is seeking a variety of remedies through the lawsuits, including injunctive relief, restitution for affected consumers, civil penalties, and the recovery of legal costs.
Consumers who believe they have been victims of similar deceptive practices are encouraged to file complaints with the Indiana Attorney General’s office through its website.
Summary of lawsuits:
Merliot Auto Sales (Indianapolis): Sold 17 vehicles with salvage titles.
Cars R Us LLC (Indianapolis): Failed to pay off consumer trade-in loans as agreed.
Phoenix Motors (Indianapolis): Sold two vehicles it did not own, later reclaiming them.
W. Main Auto Sales (Greenfield): Failed to deliver 22 titles.
MG Motors (Peru, now closed): Failed to deliver 17 titles.
Redelman’s Deals on Wheels (Greensburg): Continued selling cars after losing its dealer license in Dec. 2023.