MONTGOMERY, Ala. — Used car salesmen in general get a pretty bad rap, but Alabama Attorney General Luther Strange may have just shut down the most corrupt used car shyster in the state.
A Circuit Judge in Elmore County granted the Attorney General’s request this week for a temporary restraining order and to seize the property of Quality Used Cars and Preowned Automotive, both operated by Claton and Connie Reeves since 2009.
Among the horror stories from former customers is of a woman who traded in her Ford Ranger to purchase a car from Quality with the understanding that the dealership would pay off the $3,900 lien on the trade in. She began to receive notices that the loan had not been paid, causing serious damage to her credit and prompting the lien holder to file suit against her.
Quality not only refused to pay the lien for almost two years, it sold the truck to another customer while the debt still remained and falsely represented that they had the vehicles title.
The used car dealership also bought other vehicles under false pretenses, and paid for them with bad checks, causing credit unions, banks, and other dealerships to lose tens of thousands of dollars, according to a statement from AG Strange.
Defrauding customers was only the tip of the iceberg for the Reeves. Quality also allegedly hasn’t paid the state sales taxes in over two years, collecting $53,072.88 from their customers in the tax, but not remitting it to the state. The dealership also owes another $30,923 in penalties and interest.
In all, Attorney General Strange accuses the car dealer of 18 counts of violating the Alabama Deceptive Trade Practices Act as well as a 19th count of a Department of Revenue violation.
Quality also allegedly failed to obtain or let lapse their state businesses license and surety bond; their Alabama Dealer License and status as a “designated agent” were revoked in 2014.
“The State’s highest priority is ensuring no more parties are harmed by Quality’s business practices. If possible, the State also wishes to secure relief for those already victimized,” the Attorney General said in his motion to the Judge.
“In sum, Quality’s entire operation is unlawful,” AG Strange said in a press release.
A preliminary injunction hearing is scheduled for March 5th.
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— Elizabeth BeShears (@LizEBeesh) January 21, 2015
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