FTC Enters Consent Order with Auto Lender Over Financing Representations

Auto Finance  •  FTC

Toy CarOn July 10, the Federal Trade Commission (FTC) announced that it had entered a consent order with affiliated auto dealerships that allegedly misrepresented to consumers that auto payment programs or add-on products would save them money.  The consent order prohibits the dealerships from representing that any payment program or add-on product or service will save a consumer money unless (1) the savings are greater than the amount of fees and costs associated with the program, product, or service, and (2) information related to the savings a consumer might achieve from the program, product, or service is clearly disclosed.  The consent order also requires the dealerships to pay $184,280 to the FTC to be distributed to affected consumers.

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