The FTC charged that, during the sales process, Tate’s Auto asked consumers to provide personal information, including the customer’s name, address and monthly income.
After obtaining that information, Tate’s Auto told consumers it would be responsible for submitting the information to financing companies. However, according to the complaint, Tate’s Auto falsely inflated consumers’ monthly incomes. Further, according to the complaint, Tate’s Automotive routinely inflated the amount of a consumer’s down payment as well.
The FTC complaint also alleges Tate’s Auto representatives prevented consumers from reviewing the income and down payment information on their own forms. Representatives often rushed consumers through the process of reviewing and signing financing applications, had consumers fill out forms via phone or failed to give them the income and down payment portion of the application before it was signed.
In certain instances, Tate’s Auto also allegedly altered finance documents after they were signed by the consumer, without their knowledge. Some of the consumers, the FTC alleges, were subsequently approved for financing based on the false information provided by Tate’s Automotive. As a result, finance companies extended credit to consumers who defaulted at a higher rate than qualified buyers.
