![]() Prohibit them from charging different groups different markups: The order would require Passport to establish a fair lending program to ensure it does not discriminate going forward, including a provision that will require each Passport dealership location to either charge no financing markup or charge the same markup rate to all consumers.Passport, its president, and its vice president have agreed to a proposed federal court order that would: It also alleges that Black and Latino consumers paid on average an extra fee 24 percent and 42 percent more often, respectively, than non-Latino White consumers. The FTC’s complaint alleges that Black and Latino consumers paid on average about $291 and $235, respectively, more in interest than non-Latino white consumers did. Although Passport claimed that it had a policy to prevent discrimination, the complaint alleges that Passport did not even enforce or monitor the policy. Discriminating against Black and Latino customers: The complaint alleges that Passport regularly charges Black and Latino customers more in financing costs and fees than they charge non-Latino white customers.Passport frequently describes the extra fees it charges to customers for inspection, reconditioning, or certification as required when in many instances, auto manufacturers specifically prohibit dealers from charging separately for certification costs. The complaint cites one case in which a vehicle advertised for $24,050 was in fact sold for $26,440 due to illegal add-on fees. These fees either increase the price over what was advertised or negate any discounts the consumers negotiated. Charging illegal junk fees: Passport advertises cars as “certified,” “inspected,” or “reconditioned” at specific prices, but the FTC alleges that when customers try to pay the amount advertised for those vehicles, Passport adds hundreds or thousands of dollars in fees.In its complaint against Passport, the FTC alleges that the company has for years violated the FTC Act and the Equal Credit Opportunity Act by: The FTC also alleges that Passport charges Black and Latino consumers hundreds of dollars more in financing costs and fees, on average, than white consumers. In its complaint announced today, the FTC alleges that Passport regularly advertises certified, reconditioned, or inspected cars at specific prices, but then adds extra certification, reconditioning, or inspection fees that it falsely claims consumers are required to pay. In 2018, the FTC brought action against Passport, its president, and vice president, alleging the company mailed more than 21,000 fake “urgent recall” notices to consumers in 20, to lure them to visit dealerships. Passport, based in Maryland, owns car dealerships around the Washington, D.C., metropolitan area. “As families struggle with rising prices, companies that think they can hit consumers with hidden fees should think again.” “With this action against Passport and its top executives, the Commission is continuing its crackdown on junk fees and discriminatory practices that harm Black and Latino consumers,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. Passport, its president, Everett Hellmuth, and its vice president, Jay Klein, will pay more than $3.3 million to settle the FTC’s lawsuit, which will be used to refund consumers harmed by Passport’s conduct. The Federal Trade Commission is taking action against auto dealer Passport Automotive Group for deceiving consumers by tacking hundreds to thousands of dollars in illegal junk fees onto car prices and for discriminating against Black and Latino consumers with higher financing costs and fees. ![]() About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.
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