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Last fall, CCI began looking into the sales
practices of Dan Nelson Auto Network (now known as the Family Auto
Network). The company is a high-volume used car dealership with
locations in Des Moines, Council Bluffs, Sioux City and two South
Dakota cities.
Customers told horror stories of being
sold unreliable vehicles at a significantly inflated sales price
and given loans at a 24.95% interest rate. Often, customers were
given a very limited number of vehicles to choose from and were
only told the monthly payment despite repeated requests to know
the sale price and interest rate. Unfortunately, these were not
disclosed until after they were pressured into signing the documents.
Customers agreed to the deals because they needed a car quickly
and were told they could trade up for a newer vehicle with a lower
interest rate in 12-18 months. Soon after purchase, many cars needed
extensive repairs and the promises of a newer vehicle never materialized.
CCI brought these customers together to
form the CCI Predatory Car Sales Task Force. On May 5, more than
75 people turned out for a meeting where Dan Nelson, President of
Dan Nelson Auto Network, committed to, among other things, meet
with the Task Force within a month.
"At CCI, we believe we don't just have
to stand by and let things happen. Tonight's meeting was the first
step in what will hopefully be a successful negotiation process
with Dan Nelson, " said Linda Stanley, CCI member and former
Dan Nelson customer.
Unfortunately, Mr. Nelson has failed to
honor his commitment to his customers, CCI, and the Task Force.
As a result, CCI will continue to pursue Mr. Nelson until he meets
with the Task Force to address issues necessary to resolving members’
complaints.
For more information on this issue, please
contact Danny Wagener at 515/255-0800.
More info on the Attorney
General's consumer fraud lawsuit against Dan Nelson Automotive
Group
IOWA
ATTORNEY GENERAL'S PRESS RELEASE (with link to the lawsuit)
Updated 6/13/05
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