New Jersey Used Car Dealer Found Guilty of Defrauding Customers for Almost a Decade

A Union County, New Jersey, used car dealership was found guilty of violating state and federal consumer protection laws for nearly a decade. The dealership, at one point, committed 511 of these violations over just a two-month period.

The Superior Court in Union County ruled that Federal Auto Brokers, which operates as the used cardealership BM Motor Cars in Rahway, defrauded its customers over nearly a decade. The company has been ordered to pay more than $840,000 for violating the consumer protection laws, including the New Jersey Consumer Fraud Act.

The New Jersey used car dealership has ‘a long history of consumer protection violations’

According to a press release announcing the decision, BM Motor Cars has a long history of consumer protection violations. The 2018 Consent Order imposed a $55,899 penalty on the company for selling risky “gray-market” vehicles without proper disclosures and required it to reform its practices. BM Motor Cars continued to defraud numerous car buyers.

“The Superior Court found that the dealership’s sheer volume of violations over a two-month period–511 in all–as well as the dealership’s disregard for the 2018 Order alleging similar misconduct, reflected a ‘pattern of non-compliance’ and a ‘lack of good faith and observance of fair dealing’ that supported enhanced penalties to deter future misconduct,” the press release read…

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