Auto Dealership Faces Additional Lawsuits
By BEN SIMMONS and CARRA HIGGINS, Staff WritersSeven civil actions were filed in Randolph County Circuit Court on Thursday against Tygart Valley Chevrolet Cadillac Subaru Inc. alleging the Elkins dealership and president Rick Wyatt failed to pay off existing car loans and extended warranties the customers had purchased.
In addition, the state attorney general's office has received several complaints about the dealership, according to Charlie Fulton, an attorney in the office. Consumers have complained about the company not paying off liens on vehicles that had been traded, selling service contracts but not paying them and offering "in-house" extended warranty packages, Fulton said.
Fulton could not comment on whether the attorney general's office is investigating the dealership.
Elkins attorneys Scott Curnutte and Phil Isner filed the civil complaints on behalf of Virginia Mitchell, Keith and Ruth Bachman, Roy Thompson, Gavin and Teresa Booth, Stanley and Crystal Carroll, Stanley Friel, and Joe and Andrea Thompson.
According to the complaints, the plaintiffs purchased vehicles from Tygart Valley Chevrolet Cadillac Subaru and traded in cars with existing loans. Later, they were notified that those loans and their taxes were never paid. Curnutte said instead, the dealership allegedly spent the money on something else.
Those consumers are now obligated to pay loans for vehicles that were traded to the dealership, plus new loans for cars they can't legally drive, according to the complaint. Curnutte explained the newly purchased vehicles cannot be registered with the Department of Motor Vehicles until the taxes are paid.
Wyatt said on Nov. 7 that he wanted people "to know their titles and their payoffs will be attended to and that should be within the next short period."
Steve Dale, a spokesman for the West Virginia Division of Motor Vehicles, could not comment on whether the state agency is investigating Tygart Valley Chevrolet Cadillac Subaru Inc.
As of Friday, the dealership had not paid the plaintiffs' taxes to the DMV or the other car loans on the trade-in vehicles, according to Isner.
"The consumer was charged every penny which was to go to the old lender, and every penny which was to go to the DMV," Curnutte said. "Crucially, the dealership received every penny which was to go to the lender, and every penny which was to go to the DMV. Rather than sending the money where it was promised it would, the dealership then spent the consumers' money on other things."
In some of the cases, Curnutte said consumers had purchased extended warranties with a price of about $1,400 to $1,800. He said Mitchell purchased an extended warranty that covers repairs at virtually any mechanic and is transferable if she sells the car. He said she received the paperwork, but later got a phone call and was told she didn't have the extended warranty.
The Mitchell complaint alleges the dealership issued another warranty under a new name, Tygart Valley Warranty, in which the service contract wasn't transferable. Tygart Valley Warranty is not listed among businesses on the West Virginia Secretary of State's Web site.
"Most significantly, however, (the warranty) only covers repairs at Tygart Valley Chevrolet Cadillac Subaru and is not insured," Curnutte said. "By his own admission, Rick Wyatt has laid off his service department. So how are the repairs going to happen? If the dealership goes out of business, the consumers will be stuck with a worthless piece of paper."
Curnutte said the Bachman case includes an additional twist. He said the Bachmans purchased a vehicle on Oct. 3 and entered into a Retail Installment Sale Contract for 4.9 percent. Later, the Bachmans were told the car needed to be "inspected," and they couldn't pick it up until Oct. 6. When the Bachmans came to the dealership to pick up the car, they were told the dealership couldn't qualify for that rate, and they would have to sign a new contract at 6.99 percent. They complied, although they already had a contract at 4.9 percent.
"When you finance a vehicle purchase at a dealership, the transaction is different than if you go to your local bank and then go to the dealership," Curnutte said. "Specifically, if you finance at the dealership the finance manager takes your credit information and sends it to several lenders it works with. Those lenders then tell the dealership whether they will take the loan and, if so, at what rate - say 5 percent. The dealership then comes to you and says, 'Great news, I got you a rate of 6.5 percent.' The dealership then gets paid by the lender for the difference, the method and amount of compensation varies."
Curnutte explained that dealerships then have customers sign a Retail Installment Sale Contract, but not always - some loans are direct. That Retail Installment Sale Contract is between the customer and the dealer, and says the customer will pay for the car over the next 48 months at 6.5 percent interest. The dealer then turns around and assigns the contract to the lender.
In the cases filed by Curnutte, the plaintiffs are requesting a trial by jury and a judgment awarding compensatory damages, punitive damages and interest, along with costs, attorney fees and any other relief the court deems proper.
The plaintiffs are also seeking a judgment awarding statutory penalties pursuant to the West Virginia Consumer Credit and Protection Act.
Aside from those suits, Citizens National Bank of Elkins filed a civil action on Nov. 5 alleging the dealership is in default on its loan.
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amcdaniel80
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11-22-08 9:21 AM
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I am very glad that you have ran this follow up story. We also purchased an extended warranty through Vehicle One when we purchased our car in February. It is no good either. Mr. Wyatt is a piece of work. How could someone be so dishonest to people who were trying to support his business. It is disgaceful and I hope he is also prosecuted for his actions. It no longer looks like this is an isolated incident or an accident. They were selling warranties they had no intention of submitting to the companies. I contacted Vehicle One and my warranty was never paid for or submitted to them. They said I was scammed. If you purchased an extended warranty @ Tygarts Valley I would call and check on it. Their phone # is 1-866-215-7080. Tygarts Valley did send me a replacement in house warranty which they say will be honored. although they will not approve work that needs done right now. I could use that $1500.00 right about now!!!
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