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Bumper2Bumper - Consent Agreement and Order
September 10, 2012
The State of Maine, acting through the Bureau of Consumer Credit Protection of the Department of Professional and Financial Regulation (?the Bureau?), has reviewed business records and practices of Bumper2Bumper, Inc. (?B2B?). Based on the results of the review, the Bureau believes that B2B operated in violation of the Maine Consumer Credit Code (?the Code?), 9-A M.R.S. ? 1-101 et seq. The parties to the above captioned matter, in lieu of a regulatory hearing, hereby stipulate that the following statements are true and correct in the settlement of the above-captioned matter and, intending to be legally bound, hereby agree to the terms of this Consent Agreement and Order (?the Order?).
BACKGROUND
The Bureau is the Maine state governmental administrative agency authorized and empowered to administer and enforce the Code and other credit related statutes.
B2B is registered with the Bureau as a general creditor/ used car dealer holding registration number UCD 12215.
B2B is a Maine business engaged as a creditor in, among other things, selling, financing and arranging for financing of used motor vehicles in consumer credit transactions.
During investigation and review of B2B?s records, the Bureau?s staff determined that B2B was advertising vehicles for sale electronically using terms such as ??payments as low as $50.00 per week?? and/or ??down payments of as low as $300.00 down?? without including the amount or percentage of down payment required to obtain the weekly payment, the terms of repayment, the annual percentage rate for such repayment terms, and whether the rates could be increased in the future.
Title 9-A M.R.S. ? 3-201(1) and ?226.24(d) of Federal Reserve Board Regulation Z, (now Consumer Financial Protection Bureau Regulation Z ?1026.24(d)) deem an advertisement with respect to a consumer credit transaction to be misleading if it makes statements listing the dollar amounts of finance charges or installments without stating the down payment required, the annual percentage rate and the number and amount of the installment payments.
In addition the staff of the Bureau determined that B2B was not in compliance with Title 10 M.R.S. ? 1194 which allows so-called ?spot delivery? of vehicles prior to financing being arranged if certain disclosures are made.
B2B at the time of the audit/examination by the BCCP was not in compliance with Title 9-A M.R.S. ?5-117(1) & (2) by omitting material facts relating to the terms and conditions of sales.
CORRECTIVE ACTION
B2B has already and voluntarily taken actions and shall continue to refrain from omitting the legally required disclosure of information in its advertising as set out in paragraphs 4 and 5 above by continuing to ensure that all future advertising complies with Title 9-A M.R.S. ? 3-201(2) and Consumer Financial Protection Bureau Regulation Z ?1026.24(d).
Any vehicle which is ?spot delivered? shall be financed on B2B?s ?Buy here, pay here? plan according to the terms agreed upon in the contract if third party financing cannot be arranged on such terms.
B2B shall pay to the Bureau within 30 days of the date of this Order the sum of $1,000.00 as a civil penalty for the violations cited herein under the authority of Title 10 M.R.S. ? 8003(5)(A-1)(3).
B2B shall pay to the Bureau within 30 days of the date of this order the sum of $1,000.00 for the necessarily incurred expenses incurred by the Bureau in the investigation and prosecution of this matter under the authority of Title 9-A M.R.S. ?6-106(6).
FURTHER PROVISIONS
Consent. B2B hereby knowingly, willingly, voluntarily and irrevocably consents to the entry of this Order pursuant to the Bureau?s order authority under the Code and agree that B2B understands all of the terms and conditions contained herein. By entering into this order, B2B waives any right to a hearing or appeal concerning the terms and/or conditions set forth in this Order.
Publication and Release. B2B understands that the Order must be posted on the Bureau?s public website. B2B understands that the BCCP does not believe this matter warrants additional proactive dissemination through a press release.
Entire Agreement. This Order contains the whole agreement between the parties. There are no other terms, obligations, covenants, representations, statements, conditions or otherwise, of any kind whatsoever concerning this Order. This Order may only be amended by a writing signed by both parties.
Binding Nature. The Bureau and B2B and all owners, officers, directors, employees, heirs and assigns of B2B intend to be and are legally bound by the terms of this Order.
Counsel. B2B has been represented by Christopher Largay, Esq. in negotiating and executing this Order.
Effectiveness. B2B hereby stipulate and agree that this Order shall become effective on the date that the Bureau executes this Order.
Other Enforcement Action. The Bureau reserves all of its rights, duties and authority to enforce all statutes, rules and regulations under its jurisdiction against B2B in the future regarding all matters not resolved by this Order. B2B understands and agrees that this Order is only binding upon the Bureau and not any other local, state or federal agency, department or office regarding matters within this Order. BCCP is not aware of any other pending violation or complaint that may give rise to any such matter not resolved by this Order or the omissions and/or allegations alleged herein with the exception of a pending complaint regarding repossession of a vehicle which had been spot delivered at the Lewiston location of B2B of which B2B has been previously notified.
Authorization. The parties below represent that they are authorized to execute this Order and legally bind their respective parties.
Titles. The titles used to identify the paragraphs of this document are for the convenience of reference only and do not control the interpretation of this agreement.
THEREFORE, in consideration of the foregoing, the Bureau and B2B intending to be legally bound do hereby execute this Consent Agreement and Order.
| Date: September 10, 2012 | /s/William N. Lund |
| William N. Lund | |
| Superintendent | |
| Bureau of Consumer Credit Protection | |
| Date: September 06, 2012 | /s/Glenn Geiser, Jr. |
| Glenn Geiser, Jr. | |
| President | |
| Bumper2Bumper |