CLASS-ACTION LAWSUIT ALLEGES USED-CAR DEALER DECEIVED BUYERS

A Grove City man says he's had so much trouble with a used-car lot that he's making a federal case out of it.

Robert L. Violette of 4355 Lynn Circle is among six central Ohio plaintiffs in a class-action federal lawsuit filed against Pay Days, 3408 S. High St., an affiliate of the Ricart auto dealerships.

"They were friendly enough in the beginning,'' Violette, a 25-year-old maintenance man, said yesterday.

"But then I finally found out about the extra costs. I still don't know exactly how much I owe them. They handed me so many papers to sign and talked so fast, I'm still confused.''

The lawsuit, filed last week in U.S. District Court in Columbus, alleges that Pay Days deceives customers with hidden costs, including worthless insurance and warranties.

Pay Days also operates used-car lots at 3090 W. Broad St. and 6251 E. Main St., and in Dayton.

The sticker price on the 1996 Chevrolet pickup truck that Violette bought in November was $4,995, the suit says. But about two weeks after he signed a contract with Pay Days, he discovered the actual price was $8,208, plus interest on the loan, it says.

In addition, he was charged $193 for theft insurance and $273 for an extended warranty. Both services are worthless and were imposed illegally because they were not fully explained in writing, the suit alleges.

Violette also was asked repeatedly during a two-week period to return to the dealership to sign new loan forms, the suit says, when Pay Days was unable to find a lender for him.

When Violette became angry and asked for the return of his $1,700 deposit and the cancellation of the deal, Pay Days refused, the suit alleges.

Jay McKirahan, an attorney for Pay Days, defended the company. He said he disagrees most with the class-action nature of the suit because the plaintiffs' complaints are individual disputes.

"It's typical in the car-retail business for someone to have a particular problem or perceived problem with a dealer,'' McKirahan said. "Some people always want to bootstrap purely individual, fact-specific matters into class actions.

"We deny liability and will vigorously defend our client.''

The theft-protection fee is not insurance but part of a warranty program offered by Pay Days, McKirahan said. Referring to the extra $3,200 that Violette said he was charged for the truck, McKirahan said Violette should have studied the contract closer. "It's an age-old problem,'' McKirahan said. "People have to read what they sign.''

Asking customers to return to a dealership to sign additional papers when a contingency loan is not accepted by a bank is not unusual, he said.

"A loan can fall through for any number of reasons,'' he said. "If that happens, the customer has to come back and re-sign new loan papers.''

The six-count suit, which asks for triple damages and attorneys' fees, contends Pay Days preys on low-income consumers, many of whom have bad credit.

According to the suit, Pay Days' unfair practices include:

* Automatically charging consumers from $55 to $695 for useless auto-theft insurance.

* Charging more than the 24.8 percent legal limit on interest for car loans.

* Failing to disclose the full price of cars and the full cost of loans.

* Failing to provide car buyers with auto titles within 30 days.

The other plaintiffs are Teresa Courts of 4711 Walnut Rd., Buckeye Lake; William Stover of 221 Ohio Ave. S.W., Pataskala; Mickey Weaver of 6754 Morehampton Court, Reynoldsburg; and Carol and Kenneth Adkins of 11275 Cannon Rd., Frazeysburg in Muskingum County.

bruth@dispatch.com

Caption: Doral Chenoweth III / Dispatch
Robert L. Violette of Grove City agreed to purchase this 1996 Chevrolet pickup truck from Pay Days in November for $4,995, but later discovered the actual price was $8,208, a class-action lawsuit claims.