Attorney General McDaniel Files Suit Against Out-of-business Auto Dealership & Owner

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August 27, 2007

Hyundai Dealership Failed to Pay Off Trade-in Vehicles and Failed to Honor other Commitments to Consumers

LITTLE ROCK- Today, Attorney General Dustin McDaniel filed a lawsuit against McKay Motors, LLC as well as John P. McKay who operated McKay Hyundai in Pine Bluff.

The lawsuit alleges that McKay Motors, through its dealership McKay Hyundai, accepted trade-in vehicles but did not pay off existing liens on those vehicles. As a result, consumers were obligated to pay for cars that they no longer owned. The lawsuit also alleges that when McKay Hyundai sold new vehicles to consumers, it failed to make sales tax payments for consumers when it promised consumers that it would do so.

McDaniel alleged that this conduct violated the Arkansas Deceptive Trade Practices Act. The lawsuit, which was filed in Pulaski County Circuit Court, seeks restitution for consumers, civil penalties as well as injunctive relief against McKay Motors, LLC as well as John P. McKay.