Category Archives: Midwest

AG Zoeller files lawsuits against local businesses

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By Rob Earnshaw Times Correspondent HOBART | It was just a “day in the life” for the Indiana Attorney General’s Office as it completed its move from Merrillville to Hobart’s Police, Court and Community Complex. Indiana Attorney General Greg Zoeller filed five lawsuits ranging from foreclosure consultants to violations by local used car dealerships in Lake County. First Financial Link LLC and Josegan Inc., both of Florida, are accused of bilking two Lake County victims for a total of $3,500. The businesses promised to reduce homeowners’ interest rates or monthly payments in exchange for an upfront fee. The companies also did not register a $25,000 surety bond with the Attorney General’s Office to conduct business as foreclosure consultants in the Indiana. “These are things we’re very aggressive about,” Zoeller said. “We’ll probably find out after we file this how many other people might have been similarly scammed. Right now we’re telling people don’t pay money up front to foreclosure rescue outfits.” Hometown Motors in Gary and Luke’s Family Motors in Highland face lawsuits for allegedly taking advantage of consumers by rolling back odometers. The Attorney General’s Office said Hometown Motors and its owner John F. Petrassi are accused of knowingly reporting inaccurate mileage and year of a used vehicle and failing to provide titles to purchase vehicles. Luke’s Family Motors, in addition to an accusation of misrepresenting mileage of a used vehicle, is accused of violating the terms of a previous settlement reached with the Attorney General’s Office. “That will up the ante when it comes to penalties,” Zoeller said. “The first time we can usually work something out that makes it clear we’re paying close attention. The second time you’re in real trouble.” The Attorney General’s Office also filed a lawsuit against The Vacation Store and its owner Tom … Continue Reading

In loan case, jury awards Independence woman more than $1 million

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An Independence woman recently won a $1,198,512 court judgment, with jurors finding that a finance company had misled her into making car payments she wasn’t obligated legally to pay. The case, her lawyers said, pointed to an abusive lending practice that cuts particularly deep during tough economic times. Lawyer Bernard Brown, who represented the woman, said the Missouri Merchandising Practices Act protects consumers who are unable to obtain car titles when their dealers go out of business. The law views such sales as “fraudulent,” and purchasers are not required to keep making payments if they cannot obtain the titles, Brown said. “Consumers don’t know that they don’t have to pay, and in fact are entitled to all their payments back and their credit cleaned up,” Brown said. How many consumers get stuck with such cars after dealers go out of business is difficult to say, acknowledged Brown, whose law practice specializes in automotive issues. But Missouri Department of Revenue figures show a 9 percent decline in the number of car dealer licenses issued in Jackson County between 2006 and 2010. The problems for Brown’s client, Carrie Peel, began in August 2008 after she purchased a 2005 Ford Taurus for $12,450 the previous month, paying $3,500 down and financing the rest. Her 30-day temporary license tag was expiring and she went to the Department of Revenue to license the car. Her dealer paperwork didn’t include the title, which she needed for the license. But she got a shock when she returned to the dealer. “When I went back up there, they were closed for business,” Peel said recently. “I’m looking in the window, and they’ve closed.” The dealership had, however, sold her installment contract to Credit Acceptance Corp., a Michigan lender that is one of its industry’s leaders. In her suit, … Continue Reading