The federal government wants to ban the so-called “junk fees” that are documented when you buy a car.
Justin Gray, a consumer researcher on Channel 2, first reported on pricing in the spring. They could add thousands of dollars in extra charges, and in Georgia, consumers deceived to pay these junk fees signed the paperwork, so there was little legal means.
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Now, the new rules from the Federal Trade Commission will better protect you at the dealership.
“The reason we went into this proceeding is that buying a car is a long and complex process that involves a lot of paperwork and is being used by fraudulent dealers,” said FTC’s Dan Dwyer. Stated.
In April, Channel 2 Investigates showed that 80-year-old Edward Moore paid Mercedes nearly $ 10,000 more than he thought he had agreed at Marietta’s Grand Motors.
The final sale included expensive add-ons such as a $ 4,500 paint protection plan.
“What do I need it for?” Moore said. “Painting doesn’t cost much. Who needs a $ 4,500 paint protection plan for a $ 19,000 car?”
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In the case of Moore, he regained his money after the intervention of Channel 2 Action News.
Under the proposed new FTC rules, agents plan to ban worthless charges at dealers and require dealers to explicitly notify customers of additional charges, both verbally and in writing.
You also need to provide costs to your customers without add-ons.
“People may be handed a long contract after business hours at a dealer different from what they negotiated, and that makes it harder to find a price,” Dwyer said.
Proposed changes are open to public comments before FTC votes for the final language.
This rule gives FTC more power to take action against car dealers who violate the new rule by elaborating on what is and is not allowed.