HARRISBURG – Attorney General Dave Sunday announced a settlement with The Rosado Group, Inc., regarding the northeastern Pennsylvania-based vehicle sales group’s deceptive sales tactics and credit practices.
The Office of Attorney General alleges in the settlement that numerous dealerships under the Rosado umbrella inflated vehicle prices, without customer knowledge, and manipulated credit applications to sell more vehicles.
The Office of Attorney General alleges many of the Rosado dealership practices were violations of the Pennsylvania Automotive Industry Trade Practices and Pennsylvania Unfair Trade Practices and Consumer Protection Law.
“This dealership network engaged in a pattern of deceptive practices that prioritized their own sales figures over transparency to customers who deserve fair and honest treatment,” Attorney General Sunday said. “Many customers discovered higher final costs due to the dealership disguising add-on costs that they were then reluctant to remove when discovered. I appreciate the Rosado Group taking steps, via this settlement, to improve their overall business approach.”
The Rosado Group owns numerous dealerships, including Dickinson City Hyundai, Lehighton Kia, Milford Chrysler Dodge Jeep Ram, and Performance Kia.
Under the terms of the settlement agreement, the businesses will pay $130,000 to the Commonwealth — which includes $100,000 in restitution to impacted Pennsylvania consumers. The Commonwealth will provide restitution to known consumers who have previously filed a complaint with the Office of Attorney General. No additional steps are needed to be considered eligible for restitution.
The settlement, in the form of an Assurance of Voluntary Compliance, requires that the businesses comply with Pennsylvania and federal law concerning sales, advertising, and credit practices. The Rosado Group has agreed as part of the settlement to hire a compliance officer to assist Rosado in bringing their business practices into full legal compliance, and will cooperate with the Office of Attorney General Bureau of Consumer Protection in the hiring of that officer. The dealerships have also agreed to stricter communication as to the condition of all vehicles sold, especially used vehicles, and will offer vehicles outside of a manufacturer warranty a 90-day 3,000-mile powertrain warranty.
The businesses will also provide greater transparency in terms of financing, including ensuring consumers are fully aware of all terms of the financing, especially the monthly amount, term of the loan, and who is responsible for the loan.
This Assurance of Voluntary Compliance was filed in the Lackawanna County Court of Common Pleas by Senior Deputy Attorney General Paul D. Edger.
An Assurance of Voluntary Compliance shall not be considered as an admission of violation of the law.
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