PROVIDENCE, R.I. (WPRI) — People who bought cars within the last few years at six Rhode Island dealerships will receive refund checks after the companies reached settlement agreements with the state totaling more than $1 million.
The settlements involve Flood Ford and Flood Mazda of East Greenwich, Flood Ford of Narragansett, Valenti Subaru and Valenti Toyota of Westerly, and Saccucci Honda of Middletown.
Attorney General Peter Neronha's office had accused the companies of automatically charging or attempting to charge purchaser fees for theft-deterrent products that were not included in the advertised prices for the vehicles.
Neronha's office said that under the Deceptive Trade Act (DTA) and the R.I. Division of Motor Vehicles' (DMV) rules and regulations, "dealers can only advertise the price for which they intend to sell a vehicle."
There are exceptions for dealers to charge sales tax and negotiable title or documentation fees.
If I'm eligible, when will I get a check?
According to the settlement with Flood Auto Group, the company allegedly charged an automatic $199.00 fee for the add-on product without getting customers' informed consent first. Within 60 days, the 5,083 customers who bought a vehicle after Jan. 1, 2021, will receive an $83.26 refund check.
Saccucci Auto Group's settlement says the company also allegedly charged customers an automatic $168.00 fee for an add-on product. Within 60 days, each of the 1,435 customers who paid for the product while buying their vehicles between Jan. 1, 2021, and March 22, 2023, will receive a $53.09 refund check.
Similarly, Valenti allegedly charged an automatic $199.00 fee for an add-on product without informing customers. According to its settlement, the 4,492 customers who paid for the product between Jan. 1, 2021, and Aug. 31, 2023, will receive a refund check for $83.20 within 60 days.
All three companies have not admitted to any violations of statutes or regulations and say their primary concerns are "to their customers and future customers." The refund checks' values represent the profits the auto groups earned on each sale of the theft-deterrent products.
"Rhode Islanders should be able to trust that that price they see at the beginning of a transaction is the price they end up paying at the end," Neronha said in a press release.
"And businesses should compete and succeed based on their ability to offer the best products, service, and price rather than on how creatively they can tack on fees," he continued.