TRENTON, N.J., March 22 (Reuters) - New Jersey has filed a
consumer fraud suit against the auto leasing and financing
subsidiary of the Bank of America Corp. <BAC.N>, the state
attorney general's office said on Thursday.
The suit, filed in state Superior Court in Newark, alleges
that the Banc of America Auto Finance Corp., overcharged
customers for "excessive wear and tear" on leased vehicles and
billed for damages months after the cars had been returned --
in some cases after the vehicles had been resold.
State officials also allege the unit withheld security
deposits and denied lessees the chance to contest the charges
and obtain an independent appraisal.
The company, created as the successor to Nationsbanc Auto
Leasing Inc. when the two parent banks merged in 1998, declined
to comment on the allegations.
The state's civil complaint alleges 72 offenses dating back
to 1996, many involving sums of money exceeding $1,000. Under
New Jersey law, those found guilty of fraud can be fined up to
$7,500 per offense.
State Division of Consumer Affairs director Mark Herr noted
that one-third of all new vehicles in New Jersey are leased
rather than purchased. Of those, nearly one-third face
substantial charges when returned, he added, citing an industry
estimate of $1,647 in average charges.
"In many cases, consumers were billed for damages they say
they did not cause," Herr added.
Some of the consumers covered by the New Jersey lawuit have
records and photographs to back up that claim.
Herr referred specifically to a case in which a West New
York, New Jersey man returned a 1996 Honda Accord LX to the
leasing dealership on June 20, 1999, and obtained an inspection
report from the Honda dealer, who leased the car to him,
stating that the car had no damage.
More than two months later, however, Banc of America Auto
Finance Corp. allegedly informed him that its own inspection
had uncovered excessive wear and damages amounting to $1,668.
Whenhe contested the claim, his account was referred to a
collection agency, Herr said. |
