Wheaton Car Dealer Makes Refunds on Lease Contracts

Header--Montgomery County, Maryland. Press Releases

Db:hillandsanders.pr 99-309

Contact: Sue Rogan, 240-777-3722
George Rose, 240 777-3678

For Immediate Release: September 3, 1999

Wheaton Car Dealer Makes
Refunds on Lease Contracts

The Montgomery County Department of Housing and Community Affairs announced today that as a result of an investigation by its Division of Consumer Affairs (DCA), Hill & Sanders Ford will pay more than $6,000 to settle a complaint about the car dealer's leasing practices.

DCA alleged that Hill & Sanders, located at 11250 Veirs Mill Road, Wheaton, Maryland, had charged consumers who were leasing vehicles an "acquisition fee" when they tried to purchase the vehicle at the end of the lease term. Under standard new vehicle leases, consumers are entitled to purchase the vehicle at the end of the lease by paying the "purchase option price" stated in the lease contract. DCA investigator Sharon Wilder determined that under the lease contract, Hill & Sanders had no legal right to charge an "acquisition" fee.

Wilder said that Hill & Sanders will provide refunds totaling $5,377.24 to eleven different consumers. The refunds range from $267.46 to $1,109.78, with most consumers receiving a refund of $450. The Agreement requires Hill & Sanders to sell future lease vehicles for the "purchase option price" and not add any additional charges unless they are specifically provided for in the lease agreement. Hill & Sanders will also pay $1,000 to DCA's consumer education fund and continue to make a good faith effort to conciliate any future complaints with DCA. The Agreement does not constitute an admission by Hill & Sanders of a violation of any law.

"Motor vehicle lease terms can be confusing to consumers who aren't familiar with the differences involved in leasing versus buying cars and trucks," said DCA Division Chief George Rose in announcing the Agreement. "Consumers should read the lease agreement carefully and ask that any unfamiliar terms or conditions be explained."

Rose advised consumers with questions to call DCA at 240-777-3636 for advice before signing a lease or purchase agreement.

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