Please ensure Javascript is enabled for purposes of website accessibility
California Sues Auto Dealer for False Ads, Loan Documents
gvw_ap_news
By Associated Press
Published 6 years ago on
September 23, 2019

Share

SACRAMENTO — California’s attorney general sued Paul Blanco’s Good Car Company on Monday, leveling accusations of false advertising and lying on loan documents to boost its profits at the expense of its mostly low-income customers.
Xavier Becerra’s lawsuit comes after a two-year investigation of the dealer known for its prolific TV and radio ads declaring itself the “good car people.”
“For many families, that name could not be farther from the truth,” said Becerra, a Democrat.
The company’s dealership in Fresno is among six in the state named in the lawsuit.

Lawsuit Alleges ‘Sophisticated Scheme’ to Lure Customers

A 32-page complaint filed in Alameda County accuses the company of running a sophisticated scheme to lure customers into a dealership only to later lie about their incomes and the value of the cars they were purchasing to convince lenders to approve the loans.

The complaint alleges some employees who objected to the techniques were fired while others were warned not to be a “snitch.”
The company paid for ads promising customers could get their credit checked over the phone, a tactic designed to avoid the embarrassing experience of having a loan denied in person. Call center operators had detailed scripts, which would include telling customers to “please hold while I process your application,” only to return five seconds later to congratulate them on meeting the credit criteria for “several of our lenders.”
But Becerra says an unnamed manager at the call center said operators would not process loan applications at all. Instead, the act was a ruse to collect information and generate sales leads.
Once customers arrived at the dealership, Becerra says the company would lie about how much money a potential borrower earned each year to deceive lenders. An audit by one finance company found that out of 320 incomes reported from the company’s location in Fresno, more than 78% of them were inflated by at least $500 per month.

Expensive Add-Ons Presented as Legal Requirements, Suit Says

Becerra also said the company made lots of money by selling optional add-ons, such as insurance or service contracts, by falsely telling customers they were required by law. In some cases, Becerra said customers did not know they were purchasing add-ons because employees would hide the paperwork by placing their hands over the disclosures — a technique employees at the dealership referred to as a “hands-down close.”
“We’re talking about hardworking families who make every dollar count, seeing their hard earned money swindled away by dishonest tactics that put them in unaffordable debt,” Becerra said.
All of this, Becerra says, is endorsed and encouraged by the company’s senior management, including Paul Blanco himself. The complaint said some employees who objected to the techniques were fired while others were warned not to be a “snitch.”

Seeking Restitution for Customers and Civil Penalties

“During sessions one manager called ‘lessons in larceny,’ Paul Blanco’s taught employees to lie to third-party lenders in order to obtain consumer if financing on false pretenses and boost dealership profits,” according to the complaint, written in part by Hunter Landerholm, a deputy attorney general who is handling the case.
Landerholm said the attorney general’s office is not asking a judge to shut the company down while the lawsuit is pending. But they are asking a judge to order the company to stop using these techniques and to make them pay restitution plus civil penalties.
The defendants include the company and Paul Blanco himself.
Becerra said he does not know how many customers were impacted, urging anyone who was impacted to contact his office.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno State’s Ag College Is Growing. A New Corporate Sponsor Will Help Them

DON'T MISS

Trump Compares Russia and Ukraine to Children Fighting

DON'T MISS

Trump Administration Imposes Sanctions on Four ICC Judges in Unprecedented Move

DON'T MISS

SpaceX Will Decommission Dragon Spacecraft, Musk Says as Feud With Trump Escalates

DON'T MISS

Erika Sandoval Gets Life Sentence in Notorious Tulare County Murder

DON'T MISS

Israeli Military Strikes Beirut’s Southern Suburbs

DON'T MISS

We Are Being Governed by the Trump Organization Inc.

DON'T MISS

Wondrous Webster Has the Makings of a Wonderful Family Member

DON'T MISS

Trump Threatens Musk’s Government Deals as Feud Explodes Over Tax-Cut Bill

DON'T MISS

Fresno Police Want Your Tips to Solve Taylor Washington Homicide

UP NEXT

Trump Compares Russia and Ukraine to Children Fighting

UP NEXT

Trump Administration Imposes Sanctions on Four ICC Judges in Unprecedented Move

UP NEXT

SpaceX Will Decommission Dragon Spacecraft, Musk Says as Feud With Trump Escalates

UP NEXT

Erika Sandoval Gets Life Sentence in Notorious Tulare County Murder

UP NEXT

Israeli Military Strikes Beirut’s Southern Suburbs

UP NEXT

We Are Being Governed by the Trump Organization Inc.

UP NEXT

Wondrous Webster Has the Makings of a Wonderful Family Member

UP NEXT

Trump Threatens Musk’s Government Deals as Feud Explodes Over Tax-Cut Bill

UP NEXT

Fresno Police Want Your Tips to Solve Taylor Washington Homicide

UP NEXT

Derek Carr Explains Mysterious Retirement. He Didn’t Want to ‘Just Take the Saints’ Money’

SpaceX Will Decommission Dragon Spacecraft, Musk Says as Feud With Trump Escalates

12 hours ago

Erika Sandoval Gets Life Sentence in Notorious Tulare County Murder

12 hours ago

Israeli Military Strikes Beirut’s Southern Suburbs

13 hours ago

We Are Being Governed by the Trump Organization Inc.

13 hours ago

Wondrous Webster Has the Makings of a Wonderful Family Member

13 hours ago

Trump Threatens Musk’s Government Deals as Feud Explodes Over Tax-Cut Bill

13 hours ago

Fresno Police Want Your Tips to Solve Taylor Washington Homicide

15 hours ago

Derek Carr Explains Mysterious Retirement. He Didn’t Want to ‘Just Take the Saints’ Money’

16 hours ago

What Do Valley Leaders Say About Trump’s Threat to Yank High-Speed Rail Funding?

16 hours ago

Were Cuts in Rooftop Solar Payments Legal? CA Supreme Court Hears Arguments

17 hours ago

Fresno State’s Ag College Is Growing. A New Corporate Sponsor Will Help Them

The nonprofit supporting Fresno State’s ag specialty college unveiled its first corporate sponsor Thursday supporting students and tea...

11 hours ago

11 hours ago

Fresno State’s Ag College Is Growing. A New Corporate Sponsor Will Help Them

12 hours ago

Trump Compares Russia and Ukraine to Children Fighting

12 hours ago

Trump Administration Imposes Sanctions on Four ICC Judges in Unprecedented Move

12 hours ago

SpaceX Will Decommission Dragon Spacecraft, Musk Says as Feud With Trump Escalates

12 hours ago

Erika Sandoval Gets Life Sentence in Notorious Tulare County Murder

13 hours ago

Israeli Military Strikes Beirut’s Southern Suburbs

13 hours ago

We Are Being Governed by the Trump Organization Inc.

Webster, GV Wire's Adoptable Pet of the Week, June 5, 2025
13 hours ago

Wondrous Webster Has the Makings of a Wonderful Family Member

Help continue the work that gets you the news that matters most.

Search

Send this to a friend