Minnesota AG Sues Fridley Dealership, Claiming It Targeted Spanish Speakers With Poor Credit

Minnesota AG sues Fridley dealership, claiming it targeted Spanish speakers with poor credit. The lawsuit claims the dealership completed more than 3,000 fraudulent sales in five years.

Minnesota Attorney General Keith Ellison announced a consumer protection lawsuit filed against a Fridley used car dealership, claiming it took advantage of customers in a variety of ways.

Midwest Car Search at 990 Osborne Rd. NE is accused of engaging in a pattern and practice of deceptive sales, specifically targeting and exploiting Spanish-speaking residents and those who have low credit scores.

The dealership also allegedly misrepresented the quality of its vehicles, leaving consumers to foot the bill for repair costs, according to the lawsuit.

Ellison said the dealership and its owner, Scott Spiczka, also illegally added expensive vehicle service contracts to consumers' purchases without their consent; refused to provide warranties it's required to by law; failed to make an accurate "Buyer's Guide" disclosure and provide it in Spanish; and conducted business under an unregistered trade name that "heavily targets and exploits Spanish speakers."

In all, the suit alleges Midwest Car Search fraudulently sold 3,245 vehicles to Minnesotans from 2017 to 2022.

“Affording your life is tough enough without bad actors taking advantage of you. A car is a necessity for many, and Minnesotans should be able to shop for cars without having to worry about being deceived or defrauded. But that’s what Midwest Car Search did. They broke the law and violated consumers’ trust," Ellison said.

During the press conference, Ellison played audio recordings of a state employee posing as a "secret shopper" speaking with dealership employees about the vehicles.

The dealership employees are heard saying all vehicles are "certified," but Ellison said that wasn't the case for any sales made from 2017 to 2022.

"People are led to believe they were driving off the lots with quality vehicles. Instead, a majority of them left with lemons," the attorney general said.

A review of 200 individual consumer files by the attorney's general office found in every transaction, Midwest Car Search failed to properly disclose that a vehicle service contract would be included in the purchase at an additional cost.

"Yet from 2020 to 2022, Midwest Car Search charged more than 99% of buyers who required financing for a vehicle service contract at an average of more than $1,800 for the vehicle service contract," the filing states.

The illegally added vehicle service contracts are estimated to total around $4.5 million, Ellison said.

The lawsuit is the first the attorney general's office has filed against a used car dealer following amendments to the state's Used Car Law which became effective on Aug. 1, 2023.

 Bring Me The News reached out to Midwest Car Search for comment Tuesday and have yet to hear back.

SOURCE: Bring Me The News