FTC Takes Action to Stop Deceptive Car Dealership Ads

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You’ve probably seen ads that claim that a car dealer will pay off your loan regardless of what you may owe.  In a sense this is true, however, in some cases, what happens is that the remaining balance of what you owe  is rolled into the new loan.  As a result, you’re still paying on the previous loan while now paying on your newly purchased vehicle as well.

The FTC took action regarding offers by five dealerships: Billion Auto, Key Hyundai, Hyundai of Milford, Frank Myers AutoMaxx, and Ramey Motors.

For more on this FTC action, you may visit http://www.ftc.gov/opa/2012/03/autoloans.shtm and http://business.ftc.gov/blog/2012/03/ftc-auto-dealers-back-your-ad-claims.

The BBB suggests you read all terms and conditions of any offer regarding vehicle financing.  Make sure you understand all aspects of any loan, insurance, and credit terms for purchase and leasing.  For more information you can trust, visit www.evansville.bbb.org.

Related Posts:

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Read Here Before You Purchase a Car Online. (Fraud Alert!)

“As Is” Means Just That When Purchasing a Used Car

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Tom is V.P of Bureau Policy and Standards for the Tri-State Better Business Bureau. In addition to answering the needs of our accredited businesses, Tom can frequently be seen on WTVW providing tips for businesses and consumers. He also works closely with other local media outlets to keep our community informed of marketplace issues affecting our area.

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