Maine news, sports, weather from Portland Press Herald / Maine Sunday Telegram, Portland, Maine

Biddeford, Ellsworth auto dealers penalized

— The Associated Press

AUGUSTA — The state has taken action against two car dealerships in unrelated cases in Biddefored and Ellsworth, obtaining an agreement from one to pay a fine and restitution and taking away the license of the other to sell cars.

A used car dealership in Biddeford that was accused of using improper sales tactics to pump up the price of its advertised vehicles entered into a consent decree to resolve an unfair trade practice complaint.

Maine Attorney General Steve Rowe said the consent decree bars Five Star Auto Sales from raising the advertised price of a vehicle by charging a document-preparation fee or using unfair or deceptive tactics to sell an extended service contract.

The consent decree was filed in Kennebec County Superior Court. Rowe said consumers should be able to go into a car dealership and purchase a vehicle at its advertised price.

Under terms of the consent decree, the dealership did not admit to any wrongdoing but must pay restitution of $4,723, as well as a civil penalty $5,000.

In the other case, a Bureau of Motor Vehicles hearing officer lifted the license of Dave Gould Ford, at routes 1 and 3 in Ellsworth, following months of investigations into fraud that appears to have been a pattern at the dealership, Secretary of State Matthew Dunlap said Friday.

Investigators put a $288,000 value on fraudulent acts, such as accepting vehicles for trade that had liens against them but failing to pay off those liens.

Dunlap said evidence also showed Gould was collecting payments for insurance policies and extended warranty coverage, though he failed to submit those payments to the underwriting companies. Dunlap said the illegal acts caused some customers financial troubles.

State investigators began reviewing business practices at Gould Ford after receiving a consumer complaint in July 2007. Gould told the state Tuesday that he is taking personal responsibility for the unpaid liens, according to Dunlap.