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Car dealers to stop deceptive ads

By Tara Baukus Mello · Bankrate.com
Saturday, March 24, 2012
Posted: 9 am ET

The Federal Trade Commission, will be cracking down on deceptive and false advertising by car dealerships. The agency recently went after five car dealerships for stating that they would pay off a consumers' trade-in regardless of the amount owed.

The dealers were not absorbing any difference between the car's trade-in value and the owner's loan balance, but were taking the negative equity and rolling it into the new loan, the FTC said.

Four of the 5 dealers were new car dealers, while one sold only used cars.

Tara Baukus Mello writes the cars blog as well as the weekly Driving for Dollars column, providing both practical financial advice for consumers as well as insight into the latest developments in the automotive world. Follow her on Facebook here or on Twitter @SheDrives.

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1 Comment
Ericka
April 30, 2012 at 10:20 am

That's correct: five stars is execptional. And I mean execptional, because most banks will score three stars under the system. If your bank/CU is three stars or better, that's a good sign. Interestingly, I once did business with Washington Mutual. Right before they were taken over by the FDIC, they were ranked at one star.Default is not in our stars dear reader, but in the people who run the bank! -Shakespeare-ish