Elmhurst Dealers Settle Racial Bias Claims

Elmhurst IL

01 April, 2022

5:02 PM

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ELMHURST, IL – Edward Napleton Automotive Group, which includes Acura and Kia dealerships in Elmhurst, has agreed to pay $10 million to settle a lawsuit claiming discrimination against Black customers, the attorney general announced Friday. The state accused Oakbrook Terrace-based Napleton of charging more add-on fees for Black customers than others. The settlement was with the FTC and the Attorney General's Office. In a statement, Napleton "vehemently" denied any wrongdoing. "We made this decision to avoid the disruption of an ongoing dispute with the government," company spokesman Tilden Katz said. "This settlement is the result of a three-year process where we provided complete transparency to the government." Most of the state's claims were based on interpretations of statistical data, with no actual finding of intentional wrongdoing, Katz said. According to the lawsuit, Black customers were charged about $190 more in interest and paid $99 more for similar add-ons than similarly situated white customers. The government agencies stated Napleton dealerships illegally charged consumers for unwanted add-ons. They also said the company violated state motor vehicle advertising regulations by including coupons and offers of free gifts in its advertisements. The attorney general and FTC alleged eight Napleton dealerships and the general manager of two Illinois dealerships illegally tacked on fees such as payment insurance and paint protection. The illegal fees cost consumers hundreds or even thousands of dollars, the agencies said. One consumer reported an Arlington Heights dealership charged him nearly $4,000 in add-fees after he had paid a similar amount in a down payment, according to the lawsuit. The lawsuit said the dealerships would wait until the end of the hours-long negotiation to sneak fees for add-on products and services into customers' contracts. The fees, the agencies said, were often added in spite of customers declining the add-ons or having confirmed prices that did not include the add-ons. In other cases, the lawsuit said, customers were falsely told the add-ons were free or were a requirement to buy or finance their car. The settlement requires Napleton to establish a comprehensive fair lending program that, among other things, will cap the additional markup customers can be charged, the agencies said. Under the settlement, add-on fees are only allowed with customers' "express, informed" consent, according to the agencies. All but $50,000 of the $10 million will be used to provide monetary relief to consumers, according to the agencies. Consumers eligible for relief will be contacted by the FTC, they said. The $50,000 will be paid to the attorney general's Court Ordered and Voluntary Compliance Payment Projects Fund, the agencies said. The Elmhurst Napleton dealerships were listed among the defendants in the lawsuit.