A Virginia dealership violated the Truth in Lending Act but not state or federal odometer laws in its paperwork for financing a used car, a federal judge has ruled.
Judge Norman Moon of U.S. District Court in Lynchburg found that Altavista Motors Inc. (Chrysler-Dodge-Ford-Mercury) committed disclosure violations in a credit contract for a 1991 Dodge Daytona.
The contract did not properly itemize the $380 charged for total loss protection, at least $215 of which Altavista paid to an insurance company on the customer's behalf.
Altavista denied any wrongdoing, said defense lawyer Marissa Henderson of Richmond.
Moon found no evidence that the dealership intended to defraud Sandra Compton when it indicated the actual mileage on the odometer disclosure statement rather than on the title itself, as Virginia law requires.
There was no allegation that the mileage listed was inaccurate.
Henderson called that aspect of the decision important for dealerships because plaintiffs often make claims that failure to place the mileage disclosures on titles violates the federal odometer law.
Moon ordered a trial to resolve alleged violations of Virginia consumer protection and usury laws.
You can e-mail Eric Freedman at [email protected]