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Rutledge Warns Arkansans of Scams Following Weekend Storms and Flooding
Tue, Dec 29, 2015LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today is urging Arkansans to be on guard following the recent severe weather and flooding currently affecting many parts of the State.
“Despite these difficult times for many Arkansans, scam artists are already seeking to take advantage of those who have had damage to their home or business,” said Attorney General Rutledge. “I urge all Arkansans to use caution as they begin the clean-up process and to call my office if they suspect any type of fraud or price gouging. These are unfortunate circumstances especially around the holidays, but the Attorney General’s office is here to protect Arkansans.”
Governor Asa Hutchinson issued disaster declarations for twelve counties yesterday due to the heavy flooding and damage throughout the State caused by this past weekend’s storms. At this time, the counties include: Benton, Calhoun, Carroll, Drew, Franklin, Logan, Madison, Ouachita, Perry, Polk, Searcy and Washington.
Act 376 of 1997, which prohibits businesses from price gouging during a state of emergency, is now in effect in the 12 counties that the Governor has declared disaster areas. The law prohibits businesses from charging more than 10 percent above the pre-disaster price of goods or services, such as food, fuel, water, flashlights, batteries, blankets, medicine, bandages and construction materials. The price gouging law is triggered whenever a state of emergency is declared by federal, State or local governments. The ban on price gouging remains in effect for at least 30 days and can be extended another 30 days by the local governing body if necessary to protect the lives, property or welfare of the citizens. For home repairs, the law remains in effect for 180 days.
A violation of Act 376 is a violation of the Deceptive Trade Practices Act.
Arkansans who believe they have encountered a disaster scam or price gouging should contact the Attorney General’s office at (800) 482-8982 or file a consumer complaint at ArkansasAG.gov.
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Rutledge Files Lawsuit Against Vancurens Auto Sales
Thu, Dec 17, 2015LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today filed a consumer-protection lawsuit in Pulaski County Circuit Court against northwest Arkansas-based Vancurens Auto Sales LLC, Infinity Auto Sales Inc., Infinity Towing and Recovery Inc., John Michael Vancuren, Michelle Nicole Vancuren and their officers and owners.
Those named in the lawsuit are accused of multiple violations of the Arkansas Deceptive Trade Practices Act. By acting in concert with one another, the defendants deceived Arkansans into taking out multiple third-party loans to purchase used vehicles, failed to apply the proceeds of returned vehicles to outstanding loan principals, towed and repossessed vehicles by using high-pressure tactics and commonly failed to deliver the titles of sold vehicles to consumers.
“The Vancurens are swindling consumers by accepting vehicles on trade while not paying prior lienholders,” said Attorney General Rutledge. “These types of deceitful actions by an Arkansas business, which harms customers and the overall business community, cannot stand.
According to the complaint, the Vancurens typically submit a customer’s loan application to a third-party lender, and, if approved, the lender deposits the loan into the bank accounts of the Vancurens, leaving them with a lump sum of the loan proceeds and the borrower with the obligation to repay the lender. However, in many cases, the customer has returned the purchased vehicle due to mechanical issues, but the Vancurens fail to return the loan proceeds, which leaves the customer with a debt to pay and no vehicle. In other situations, the Vancurens convince the consumer to purchase another vehicle with financing from a different third-party lender, but again the Vancurens fail to refund the original loan proceeds so the consumer is left with two loans on two different vehicles but only have one vehicle.
Twelve consumer complaints have been received at the Attorney General’s office in response to the negative business practices of the Vancurens. One Arkansan described a June 2013 purchase of a Ford truck for which his sister co-signed. The consumer returned the truck to the lot six weeks after purchase because of mechanical issues. John Vancuren promised the consumer that his loan with Westlake had been paid off. Three years later however, the consumer’s sister learned through a separate credit application that her credit report showed 24 months of late payments to Westlake for the aforementioned truck. The Vancurens’ failure to pay off the transaction as promised has resulted in a ruined credit history for the consumer and his sister who has been unable to purchase a new car for her growing family.
A Spanish-speaking consumer purchased a Honda Civic from the Vancurens in August 2013. In September 2014, John Vancuren arranged to meet the consumer and her son, who spoke some English, at the dealership. Knowing that the consumer was not fluent in English, Vancuren took the consumer’s son inside and slipped out the back door to present the Spanish-speaking consumer with a document stating she “returned the car to the dealer instead of paying the balance on the car.” He told her if she would sign it, he would give her a $5,900 check for the equity in the car. The check never arrived, and the consumer was left without a car.
Rutledge is asking the court to impose civil penalties, restitution, attorneys’ fees, costs and other relief against these individuals and companies.
Victims of these business practices should contact the Attorney General’s office to file a consumer complaint at (800) 482-8982 or go to ArkansasAG.gov.