The Federal Trade Commission announced Tuesday it is sending $1 million in refunds to Rhinelander Auto Center’s customers allegedly harmed by junk fees and discriminatory practices.
The checks are being sent to 7,531 consumers of the Wisconsin dealership.
The dealership agreed to a court order in October 2023 to pay $1.1 million for the refunds along with being required to receive informed consent before charging add-ons and establish a fair lending program.
The complaint from the FTC and Wisconsin Department of Justice stated the dealership charged customers fees for add-ons without their consent. It was also alleged the dealership discriminated against American Indian customers, charging more for financing.
In a statement to the Wisconsin Examiner and other outlets, Rhinelander denied the allegations but agreed to the settlement to avoid costly litigation.
“Rhinelander Auto Group respects all of its customers, and we are committed to treating all customers with dignity,” the owners said through a spokesperson. “We totally reject that our people – many of whom are long-term members of the local community – would engage in the practices alleged. That’s not who we are, and there is a great deal of evidence to reinforce the fact that Rhinelander Auto Group and its employees are ethical, decent, and very good people. Nonetheless, to avoid lengthy and costly litigation, we reluctantly agreed to a voluntary resolution to conclude the matter. The agreement includes no admission of wrong-doing, and it requires the company to pay a forfeiture; upgrade its compliance, credit, and other administrative policies; and expand its employee training efforts,” the Rhinelander statement in the Wisconsin Examiner read.
In a separate settlement with the FTC and the State of Wisconsin, Rhinelander’s former owner agreed to a permanent restraining order barring them from promoting, marketing, selling and financing vehicles. They will also pay $100,000 to refund customers.
