Napleton Auto Group agrees to $10 million settlement in racial discrimination case

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Napleton Auto Group agrees to $10 million settlement in racial discrimination case
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The FTC alleged Napleton car dealerships in four states charged customers hidden fees for unwanted add-on products and discriminated against Black customers by charging them higher financing fees and interest rates.

The FTC alleged Napleton car dealerships in four states charged customers hidden fees for unwanted add-on products and discriminated against Black customers by charging them higher financing fees and interest rates than non-Latino White customers.

The dealerships charged customers for products like extended warranties and service plans — charges that were typically added to the amount financed and spread over monthly payments, so they were difficult for consumers to spot, according to the FTC. No Indiana dealerships are named in the lawsuit or settlement, although WRTV is aware of two dealers who are part of Ed Napleton Dealer Group— Napleton Kia of Fishers and Maserati of Indianapolis.

Jessica Poertner’s lawsuit, which is still pending, against Napleton Kia of Fishers alleges they violated the Indiana Deceptive Consumer Sales Act and the federal Truth in Lending Act.The FTC’s lawsuit alleged eight dealerships violated the Illinois Consumer Fraud and Deceptive Business Practices Act.

One consumer cited in the FTC’s lawsuit reported that an Arlington Heights, Ill. dealership charged him nearly $4,000 in add-on fees after he’d paid a similar amount in down payment.“While we vehemently deny any wrongdoing, the Ed Napleton Dealership Group has resolved disputed claims made by the Federal Trade Commission and the Illinois Attorney General’s office. We made this decision to avoid the disruption of an ongoing dispute with the government.

The governments’ unproven claims relate to 8 of the 51 Ed Napleton Dealer Group dealership locations. Dealerships outside of the Ed Napleton Dealership Group bearing the Napleton name were never part of this inquiry.

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