FTC Charges Auto Dealers Targeting Navajo Nation Borrowers

Published: Monday, August 6, 2018 - 5:05am
Updated: Monday, August 6, 2018 - 9:49am

The Federal Trade Commission has charged a group of four auto dealers operating in Arizona and New Mexico, near the border of the Navajo Nation, with using deceptive practices to sell cars.

The FTC is conducting an ongoing investigation into dealerships over predatory lending practices against specific borrowers living on the Navajo Nation.

“When a dealership falsifies information, as we’ve alleged, they’re going to have a higher default rate. That higher default rate is likely going to show up, in some form, in terms of the price that other consumers pay,” said Colin Hector, an attorney with the FTC in the Division of Financial Practices.

Charges in this case against Tate’s Auto Group include falsifying consumers’ income and down payment information on vehicle financing applications and misrepresenting important financial terms in vehicle advertisements.

The FTC charges come as part of an effort by the Navajo Nation Human Rights Commission to protect Navajo consumers.

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