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January 11, 2016

Spirit Lake Auto Dealer to Refund Consumers, Make Changes to Comply with Consumer Credit Laws

Consumer Protection Division alleges improper fees and consumer credit contracts

(DES MOINES, Iowa) A Spirit Lake auto dealer will forgive balances on certain consumer credit transactions, provide refunds for certain charges, and agrees to comply with state consumer credit laws, after the Consumer Protection Division alleged that the dealership violated the federal Truth in Lending Act and the Iowa Consumer Credit Code.

Kemna Auto, doing business as AutoSmart, has agreed to forgive outstanding credit balances, including repair fees, in cases where it illegally added repair charges to existing credit transactions and repossessed vehicles in cases where consumers didn’t pay their repair bills.

The company also agreed to refund returned check fees improperly collected in connection with existing credit transactions.

The agreement, called an assurance of discontinuance, requires the company to revise its installment sales contracts and comply with the Iowa Consumer Credit Code.


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