New Jersey Used Car Dealer Found Guilty of Defrauding Customers for Almost a Decade
A Union County, New Jersey, used car dealership was found guilty of violating state and federal consumer protection laws for nearly a decade. The dealership, at one point, committed 511 of these violations over just a two-month period.
The Superior Court in Union County ruled that Federal Auto Brokers, which operates as the used car dealership BM Motor Cars in Rahway, defrauded its customers over nearly a decade. The company has been ordered to pay more than $840,000 for violating the consumer protection laws, including the New Jersey Consumer Fraud Act.
Acting Attorney General Jennifer Davenport and the Division of Consumer Affairs reported that the Superior Court ruled BM Motor Cars failed to disclose critical vehicle information to buyers. The used car dealership also withheld pricing information in its advertisements and violated a 2018 Consent Order with the Division of Consumer Affairs.
The New Jersey used car dealership has ‘a long history of consumer protection violations’
According to a press release announcing the decision, BM Motor Cars has a long history of consumer protection violations. The 2018 Consent Order imposed a $55,899 penalty on the company for selling risky “gray-market” vehicles without proper disclosures and required it to reform its practices. BM Motor Cars continued to defraud numerous car buyers.
“The Superior Court found that the dealership’s sheer volume of violations over a two-month period–511 in all–as well as the dealership’s disregard for the 2018 Order alleging similar misconduct, reflected a ‘pattern of non-compliance’ and a ‘lack of good faith and observance of fair dealing’ that supported enhanced penalties to deter future misconduct,” the press release read.
In the lawsuit, the State of New Jersey alleged the used car dealership failed to include dealer preparation fees in the list price on its online advertisements. The dealership also allegedly had consumers waive their right to purchase a used vehicle that meets New Jersey inspection standards without providing a separate disclosure of known defects to the consumers.
They also allegedly failed to provide a copy of the signed odometer disclosure statement showing the vehicle’s mileage at the time of ownership transfer. The State of New Jersey also alleged that BM Motor Cars did not provide required disclosures regarding gray-market motor vehicles, which importers bring in without authorization and may not meet U.S. safety or emissions standards.
‘Access to a safe and affordable vehicle is not a luxury – it is a necessity’
The court’s ruling now enjoins BM Motor Cars from engaging in any unfair or deceptive acts or practices in the conduct of its business in New Jersey and requires the dealership to comply with all applicable state and/or federal laws, rules, and regulations.
“The judgment against BM Motor Cars holds the dealership accountable for years of misrepresenting and failing to disclose the true condition and mileage of the vehicles they sold,” said Jeremy E. Hollander, Acting Director of the Division of Consumer Affairs.
“Access to a safe and affordable vehicle is not a luxury – it is a necessity for New Jersey families. Consumers have the right to clear, truthful information when navigating the expensive and complex process of buying a car,” said Acting Attorney General Davenport.
