Bruce Walters Ford Sales Charges and Electronic Signatures Class Action

According to the complaint for this class action, Bruce Walters Ford Sales, Inc. sells motor vehicles to consumers in Kentucky and executes retail installment contracts (RISCs) for them, which it then sells or assigns to Credit Acceptance Corporation (CAC). However, the complaint alleges that the process of selling vehicles and executing RISCs is improper and violates consumer protection and truth-in-lending laws.

The complaint cites a number of problems with the process, which it alleges CAC devised.

First, CAC wants all documentation, including the RISC, to be signed electronically. The transactions must therefore comply with the federal E-Sign Act and Kentucky’s version of the Uniform Electronic Transactions Act. Both these laws require full disclosure of the consequences, rights, duties obligations involved with use of electronic signatures, which the complaint alleges that the Walters company does not provide.

Second, Walters charges each vehicle purchaser a “customer service fee” or “processing fee” of $799. The complaint alleges that this is significantly higher than the processing fees charged by other car sellers and is not justifiable by any service provided by Walters. The complaint claims that this charge violates the Kentucky Consumer Protection Act.

Third, Walters also sells some purchasers GAP insurance, which pays for cancellation of the remaining car loan in the case of certain events (such as fire, theft, or collision). Walters sold this insurance to the plaintiffs in this case for $976, but the complaint claims that “GAP coverage is readily available and is easily obtained by any consumer from his or her own insurance agent for a fraction of the cost charged by Walters.”

Fourth, GAP coverage is not required, and Walters is supposed to tell customers this and get their signed, written consent to purchase it. The complaint claims that the company did not comply with the laws and get proper consent.

Also, the complaint says, “Walters violated the federal truth-in-lending act where, absent proper consent, the cost of the GAP product was required to be disclosed as part of the amount financed which it was not.”

The complaint illustrates the alleged incorrect process at Walters in describing the experience of David Mounts, who went to Walter with his mother Bonnie Mounts to buy a car for her in July 2019.

Three classes have been defined for this complaint.

  • The first class is all persons who (a) bought a vehicle from Walters and (b) were charged a $799 fee for “customer services,” (c) between April 3, 2018 and the present.
  • The second class is all persons who (a) bought a vehicle from Walters and (b) were charged for Gap protection in excess of $900, (c) between April 3, 2018 and the present.
  • The third class relates to the truth-in-lending allegations, GAP coverage, and the use of electronic signatures. See the complaint, linked below, on page 10.
Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Bruce Walters Ford Sales Charges and Electronic Signatures Complaint

April 3, 2020

According to the complaint for this class action, Bruce Walters Ford Sales, Inc. sells motor vehicles to consumers in Kentucky and executes retail installment contracts (RISCs) for them, which it then sells or assigns to Credit Acceptance Corporation (CAC). However, the complaint alleges that the process of selling vehicles and executing RISCs is improper and violates consumer protection and truth-in-lending laws.

Bruce Walters Ford Sales Charges and Electronic Signatures Complaint

Case Event History

Bruce Walters Ford Sales Charges and Electronic Signatures Complaint

April 3, 2020

According to the complaint for this class action, Bruce Walters Ford Sales, Inc. sells motor vehicles to consumers in Kentucky and executes retail installment contracts (RISCs) for them, which it then sells or assigns to Credit Acceptance Corporation (CAC). However, the complaint alleges that the process of selling vehicles and executing RISCs is improper and violates consumer protection and truth-in-lending laws.

Bruce Walters Ford Sales Charges and Electronic Signatures Complaint
Tags: Electronic Signatures, Excessive Fees, Truth in Lending