Dealer Network Turned Off Thousands of Cars Remotely Despite Timely Payments | Carscoops

      Though the dealership has shut down, some customers are still facing the repercussions.

      A dealer network in Georgia is on the verge of bankruptcy after a federal agency intervened regarding unethical practices.

      The Consumer Financial Protection Bureau alleges that US Auto Sales misused GPS kill switches in their vehicles.

      The parent company of the dealership network may escape financial responsibility to the victims.

      Securing a car loan with poor credit is challenging—whether in the USA or elsewhere—but it is not impossible. US Auto Sales, a Georgia-based dealership, presented itself as a potential solution. While interest rates were steep, the cars typically had high mileage, and the prices were not favorable, the dealership provided options for individuals who would be denied elsewhere.

      At its height, US Auto Sales operated 39 dealerships in the Southeast and generated over $400 million in revenue by catering to deeply subprime borrowers, those with credit scores ranging from 500 to 550, before folding in 2023, as reported by the Atlanta Journal-Constitution.

      What many customers were unaware of was that US Auto Sales had the ability to disable their vehicles remotely. According to the Consumer Financial Protection Bureau, the dealership network turned off cars more than 5,200 times while customers were current on their payments. Furthermore, it reportedly did so an additional 1,500 times despite having assured customers that it wouldn’t.

      These findings are integral to a detailed lawsuit against US Auto Sales, as noted by the Atlanta Journal-Constitution. The dealership network acknowledged that they improperly disabled cars at least 7,500 times. One collections manager recalled multiple instances of customers being stranded, unable to pick up their children or go shopping because their vehicles were wrongly disabled.

      Additionally, the dealership sent out over 71,000 false warnings to drivers, according to the lawsuit. The company allegedly recognized that these issues could be remedied but deemed it too costly. To make matters worse, they also charged customers twice, amassing millions through erroneous billing practices.

      In November, a federal judge ordered US Auto's financing division, USASF Servicing, to pay $42.6 million for the misuse of kill switches, double-billing, and other infringements on consumer protection laws. However, by that point, the company had already collapsed, leaving affected customers with little chance of recovery.

      Conversely, Milestone Partners, the company behind US Auto Sales, has seemingly attempted to disassociate itself from the scandal, claiming in at least one lawsuit that it shouldn’t be liable for the dealer's actions. Ultimately, consumers harmed by US Auto Sales may not receive any compensation from the dealership. Nevertheless, if a judgment is issued against them, there is a possibility that federal relief funds may help cover some of the damages.