April 30, 2019

Indiana Auto Dealerships Face Lawsuits Over Car-Buying Fees

stock photo

stock photo

INDIANAPOLIS (AP) — Dozens of Indiana auto dealerships are facing lawsuits that accuse them of charging excessive fees to prepare sales-related documents.

The Indianapolis Business Journal reports that at least seven lawsuits, all pursuing class action status, were filed in April. The suits allege that car dealerships demand fees, with some approaching $200 per business deal, as a means to "extract additional profits from consumers in an unfair and prohibited manner."

The pending lawsuits accuse dealerships of violating the Indiana Deceptive Consumer Sales Act. The suits come as the state considers relaxing standards for charging such fees.

Legislation that passed the General Assembly and is currently before Gov. Eric Holcomb would eliminate the standard that the fees mirror actual dealership costs, as long as they are less than $200.

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