(Phoenix, Ariz. – Feb. 21, 2008) Attorney General Terry Goddard today announced a $19,500 settlement with D.W. Phillips, L.L.C., dba Arizona Honda, resolving allegations that the Tucson power equipment dealer used deceptive practices to secure financing for consumers who may not have otherwise qualified for financing.
Arizona Honda sells ATVs, motorcycles, scooters, generators, lawn mowers and other power equipment.
The State alleged that Arizona Honda employees would help customers secure credit cards from a financial institution to purchase ATVs and/or motorcycles. According to the settlement, the State also alleged that employees would note “accessories” as the charge on credit cards and then list that amount as a “Cash Down payment” or “Total Down payment” on documents used to secure financing.
According to the State, Arizona Honda's employees did not tell consumers that this practice was an infringement of the financial institution’s lending policy and that the consumer may not have otherwise qualified for financing. The State also believes Arizona Honda's sales representatives, finance managers and sales coordinator were aware of this practice.