Alpha Cars LLC Settles with the Governor's Office of Consumer Protection
ATLANTA, GA – John Sours, Administrator of the Governor’s Office of Consumer Protection (“OCP”), announced today that the agency has entered into a settlement with Alpha Cars LLC, of Roswell, Georgia, and its principals, Jonaid Malik and Rehan Saeed. The settlement also covers related entities known as “Alpha Carz” and “AAA-GA.” OCP alleges that the used motor vehicle dealership engaged in unlawful sales and advertising practices, including: failing to disclose to consumers that vehicles had frame, unibody or other damage when consumers asked about a vehicle’s condition; stating in Internet advertisements that certain vehicles had no known accident history, when that was not the case; failing to disclose to consumers that their deposits were non-refundable; and misrepresenting to consumers that certain vehicles were still under a manufacturer’s warranty, without determining whether such warranties had become void due to significant accident damage the vehicles had sustained. OCP also alleges that Alpha Cars represented on one of its websites that it sold new cars, when it actually only sells used vehicles and is not licensed to sell new vehicles.
Alpha Cars has signed an Assurance of Voluntary Compliance with OCP requiring it to pay $16,419.26 in consumer restitution, a $15,000.00 civil penalty and $10,000.00 in administrative expenses. An additional $25,000.00 civil penalty will become effective if OCP receives any actionable, verifiable consumer complaints within 12 months concerning Alpha Cars, its related entities, or any other business entity in which either or both Messrs. Malik or Saeed have an interest. In addition, the company and its principals agree that going forward they will disclose to consumers known damage to vehicles offered for sale, to disclose and explain refund policies before accepting deposits from consumers, and to cease misrepresenting the condition of vehicles in its advertisements.
“Outside of a home purchase, this is often the most important financial transaction a consumer can make,” says Mr. Sours. “Consumers deserve to know what they are buying so they can make an informed decision.”