INDIANAPOLIS — A string of Indianapolis used car stores will pay back nearly $500,000 to customers after a settlement.
The stores operate under the name "Honest Abe Auto Sales."
According to a lawsuit and settlement filed by Attorney General Todd Rokita, Honest Abe advertised specific prices on vehicles, but when customers with "subprime credit" tried to purchase any of these vehicles, Honest Abe raised the prices by thousands of dollars.
The lawsuit says Honest Abe then didn't tell the customers the price increase as a cost of credit, and over 250 customers were affected.
“We won’t tolerate businesses breaking the law and duping Hoosiers into paying higher prices than advertised,” Rokita said. “Regardless of their credit scores, consumers should never encounter bait-and-switch tactics in which prices change the second customers arrive in person.”
Honest Abe will have to pay $470,646 in restitution to the affected customers.
“Here we have a business that allegedly hid extra finance fees, staggering service charges, document costs and outright price markups,” Rokita said. “The fact they call themselves ‘Honest Abe’ just makes the facts of this case especially rich.”
Honest Abe operates four stores at the following locations:
- 4401 N. Keystone Ave.
- 5520 W. Washington St.
- 3201 W. 16th St.
- 5422 Madison Ave.
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