Massachusetts Attorney General Maura Healey has sued used car dealership JD Byrider saying the company sold poorly reconditioned cars and saddled consumers with unaffordable loans and unhelpful extended warranty packages.The suit alleges, JD Byrider priced its cars at more than double their retail value and required drivers to sign on to a car loan with an annual percentage rate of 20 percent no matter the buyers' credit qualifications.
JD Byrider's extended service contract, costing $1,300 a car, was bundled into the loan as well, so consumers were forced to pay 20 percent interest on that service contract, Healey's office said. JD Byrider is also accused of using faulty underwriting procedures to get consumers into loans they could not afford. To get the benefit of the service contract, consumers are then required to use a JD Byrider service center, also according to the news release. And that service contract does not cover towing costs and does not cover a litany of parts such as, fuel injection components, seals and gaskets, hoses and belts, exhaust systems, catalytic converters, flywheels, radiators, standard transmission clutch parts, transmission mounts, transmission fluid lines, shocks, struts, stabilizer bars and ball joints, according to the lawsuit.
There was also a $50 deductible under the service contract. Healey's office said buyers have returned hundreds of cars to JD Byrider for repair within three months of purchase due to the mechanical breakdown of a major component such as the engine, electrical system, transmission, brakes, or drive train. The suit says JD Byrider spent less on parts to recondition cars than it claimed, and that service managers were given bonuses for keeping amount spent on parts down. "We allege that JD Byrider ripped off Massachusetts drivers by offering predatory loans for defective and inoperable cars," said AG Healey.
"Our goal in this lawsuit is to recover losses to Massachusetts consumers and make this company pay for the harm they caused to thousands of drivers across this state." More than half of JD Byrider's deals fail or end in repossession, Healey's office said. That means consumers suffered economic harm from the loss of transportation and damage to their credit. Healey's office has been going after other dealerships in recent months. It shut down a dealership called Auto Number One in Abington for selling unsafe cars, obtained an injunction against another t F&R Auto Sales, Inc.
of Westport to stop it from selling unsafe cars and from providing consumers with incomplete or inaccurate paperwork, and entered into an agreement requiring Auto Drive One with several locations in the state to pay restitution.For tips or questions about the auto industry, consumers are asked call the Attorney General's consumer hotline at 617-727-8400 or file a complaint with the office.
Reason of review: Poor customer service.
Preferred solution: Full refund.
I liked: Attorney general, Maura healey.
I didn't like: Poor service to customers, Bad loans, Bad vehicles.