Feds want to ban ‘unwanted fees’ that could cost you thousands more at car dealerships – WSB-TV Channel 2

Latest / July 5, 2022 / DRPhillF / 0

ATLANTA – The federal government wants to ban so-called “unwanted fees” that fall into the cards when buying a car.

Channel Two Consumer Investigator Justin Gray I first mentioned about the fees in the spring. They can add up to thousands of extra dollars, and in Georgia, consumers who were tricked into paying these unwanted fees had little legal recourse because they signed the paperwork.

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Now, a new rule from the Federal Trade Commission would better protect you at the agency.

“The reason we got involved in this case is that car buying is a long and complicated process that requires a lot of paperwork, and dishonest dealers benefit from that,” said Dan Dwyer of the Federal Trade Commission.

Back in April, Channel 2 investigators showed you how 80-year-old Edward Moore paid nearly $10,000 more for his Mercedes than he thought he agreed to at Grand Motors in Marietta.

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The final sale included expensive extras, like the $4,500 Paint Protection Plan.

“What will I need?” Moore said. “A paint job wouldn’t cost much. Who would want a $4,500 paint protection plan on a $19,000 car?”

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In Moore’s case, he got his money back after Channel 2 Action News intervened.

In the proposed new FTC rule, the agency plans to ban fees that are of no value to the merchant and require merchants to clearly notify customers about the additional fees both orally and in writing.

They will also need to provide customers with the cost without the add-ons.

“People may be handed a longer contract after hours at the agency that is different from what they negotiated, and that makes it difficult to set fees,” Dwyer said.

The proposed changes are open for public comment before the FTC votes on final language.

By clarifying what is and is not allowed, the rule gives the FTC more power to take action against car dealers who violate the new rule.

Representatives said many were injured after a man crashed into a gas station in Baulding County, shooting himself Once the truck crossed to signal, it hit several cars in the store’s parking lot, including the gas pumps.