Gilbert Nissan named in Attorney General's complaint Monday
Tiffany Sukola | Hagadone News Network | UPDATED 11 years, 8 months AGO
OLYMPIA - Several Northwest auto dealerships owned by Moses Lake businessman Mark Gilbert have allegedly failed to pay off buyer's trade-in vehicles as required by law, according to consumer complaints filed with the state Attorney General's office.
The Walla Walla County Superior Court granted the state Attorney General's motion for a preliminary injunction last week, according to information released by the state on Monday. The dealerships must now comply with dealer and consumer protection laws requiring prompt payoff of customer's trade-in vehicles.
The Attorney General's office wants the court to assess a civil penalty of $2,000 for each violation outlined in the complaint as well as make necessary orders to provide for consumer restitution.
Gilbert's dealerships in College Place, Walla Walla, Moses Lake and Moscow, Idaho allegedly failed to pay off buyer's trade-in vehicles as required under both Washington and Idaho law, according to a complaint filed by the state Attorney General's office.
The dealership's actions resulted in some buyers being forced to make payments on both the new vehicle and their trade-in to avoid collections agencies and repossession, according to a press release from the Attorney General's office.
The complaint includes 42 consumer allegations claiming either Gilbert Auto Honda of College Place, Gilbert Chrysler Jeep Dodge Ram of Walla Walla, Gilbert Auto Nissan of Moses Lake or Gilbert Auto Ford of Moscow, Idaho failed to pay off their trade-in vehicles for them.
According to one Moses Lake consumer, Gilbert Nissan did not pay the security interest on a Kia Sportage traded in for a Honda CRV at the Moses Lake dealership in November 2012. The customer reportedly received a letter from the company that financed the Kia informing him that his December payment was overdue, according to the complaint.
Per state law, Gilbert Nissan should have paid off the lien holder of the Kia no later than the close of the second business day following the date the vehicle was acquired. However, the complaint alleges the dealership did not follow that law.
Another Moses Lake consumer filed a complaint claiming the dealership in February had yet to pay off a $21,000 lien on a Ford truck traded in on Dec. 1, 2012, according to the complaint.
According to the Attorney General's office, the Gilbert dealerships have amassed significant liabilities to consumers and lenders related to the unpaid off trade-in liens. The Attorney General named the bonding company, Sentry Select Insurance Company, as a defendant in the lawsuit.
According to the press release, each dealership carries a bond of $30,000 to protect consumers. The complaint calls for losses and damages incurred by consumers to be paid using the Sentry Select bonds.
Gilbert Nissan is also currently involved in a lawsuit with Nissan Motor Acceptance Corporation in Grant County Superior Court. The Nissan lending company filed a lawsuit last month, suing the Moses Lake dealership over claims it breached contract agreements.
The breach resulted in about $3.4 million of unpaid loan balances, according to a previous Columbia Basin Herald article.
The Nissan lending company reportedly determined Gilbert Nissan had not paid for 69 cars as of Jan. 18 and still owed the company for past due wholesale charges, mortgage payments and sign lease payments.
The lawsuit calls for the immediate repayment of about $3.4 million in unpaid loan balances, $44,000 in sign leasing fees and about $1.7 million it owes in mortgage fees, according to records.
American Honda Finance Corporation filed a similar lawsuit against Gilbert Auto Honda in College Place last month, according to the complaint.
In its lawsuit, the Honda financing company claims the College Place dealership sold a number of vehicles financed by American Honda without paying for them.
As of January, Gilbert Honda allegedly owed American Honda about $107,585 for vehicles sold out of trust.
As of Feb. 7, Gilbert Honda had sold 27 vehicles without paying American Honda Finance for them, according to the complaint. The Honda financing company declared Gilbert Honda in default of its contracts with American Honda Feb. 8.
As of last month, Gilbert Honda owed American Honda Finance more than $5 million in credit extended to the dealership, according to the complaint.
Gilbert of Walla Walla also allegedly sold vehicles out of trust without paying its lender for the vehicle and without transferring the title to vehicles in accordance with the law, the complaint alleges.
According to the press release, Washington consumers who faced similar experiences during transactions with any of the mentioned Gilbert dealerships are encouraged to file a complaint with the Attorney General's office.
Consumers can file their complaints at https://fortress.wa.gov/atg/formhandler/ago/ComplaintForm.aspx.
Gilbert was not available for comment Monday.
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