A Central Kentucky car dealership is the target of a lawsuit filed by the Attorney General’s office, alleging deceptive business practices and seeks more than $1 million in damages.
The lawsuit, filed Wednesday at Fayette Circuit Court, names The United Group Inc., also known as Auto Plaza USA, in Nicholasville, and accuses them of violating Kentucky’s Consumer Protection Act by defrauding more than 1,400 customers.
According to the lawsuit, between 2012 and 2016, the defendant collected vehicle usage taxes from customers and then falsified documents to avoid making the correct payment to the Kentucky Department of Revenue. As a result, customers received delinquent tax notices from the department and left owing a tax bill that, in many cases, they already paid to the defendant.
The lawsuit also alleges the defendant charged each customer a $489 fee for preparation of documents and services that were not properly performed.
The Attorney General’s office is seeking more than $1 million in damages, including approximately $465,000 in restitution for customers who incurred additional unpaid usage tax liabilities and $685,000 for customers affected by the bogus customer fee.
They launched an investigation into the company’s practices and filed suit following more than 100 consumer complaints received by both the attorney general’s office and the Better Business Bureau.
“Every Kentuckian deserves an honest and fair car buying experience,” said Attorney General Andy Beshear. “Today’s action sends a strong message that my office will defend Kentucky families against bad actors and hold dishonest businesses accountable.”
“When calls and complaints started coming into our office a few months ago from Auto Plaza USA customers alleging the same unpaid tax problem, we believed there was a serious issue,” said Kim Sweazy, director of operations for the Better Business Bureau of Central and Eastern Kentucky. “We made the attorney general’s office aware of our concerns, and they worked swiftly toward today’s action.”
Consumers who have experienced issues with Auto Plaza USA or any other Kentucky business may file a consumer complaint with the Attorney General’s Office of Consumer Protection at ag.ky.gov, or call 1-888-432-9257.
