California sues auto dealer for false ads, loan documents
SACRAMENTO, Calif. (AP) — California’s attorney general is accusing a car dealership of false advertising and lying on loan documents to boost the company’s profits at the expense of its mostly low-income customers.
Attorney General Xavier Becerra sued Paul Blanco’s Good Car Company on Monday.
Becerra said the company’s prolific TV and radio ads would boast about 2% interest rates and approving people for loans over the phone. But Becerra said those were lies designed to lure customers to the dealership. Once people came, Becerra said the company would then lie about their incomes and the value of the vehicles to convince lenders to approve the loans.
Representatives from the dealership did not respond to a request for comment. Paul Blanco’s Good Car Company operates seven auto dealerships in California and two in Nevada.
This version corrects that the company has seven dealerships in California and two in Nevada, not seven in California and Nevada.