The Federal Trade Commission (FTC) has announced that it is distributing a second round of payments, totaling over $857,000, to victims who suffered from the junk fees and discriminatory practices of the Illinois-based Napleton Automotive Group.
In this round, the agency is dispatching 37,034 checks. The FTC advises recipients to cash their checks within 90 days and directs those with questions about their refund to contact the refund administrator, Epiq, or visit the FTC website for answers to frequently asked questions regarding the refund process. The Commission emphasizes that it never requires individuals to pay money or provide account information to receive a refund.
This follows an initial refund mailing by the FTC in November 2022, where over 88% of eligible consumers cashed their checks, resulting in more than $8.8 million returned to consumers.
The FTC and the State of Illinois filed a lawsuit against Napleton Automotive Group in March 2022. The suit alleged that Napleton employees were secretly adding illegal junk fees for unwanted “add-ons” to vehicle purchases and discriminating against Black consumers. As per the joint complaint, eight of the company’s dealerships unlawfully added junk fees for unrequested “add-on” products like payment insurance and paint protection, costing consumers hundreds or even thousands of dollars. Furthermore, the complaint accused Napleton of charging Black consumers more for add-ons and financing.
The settlement amounted to a record sum for an auto finance case, reflecting the widespread and high-cost harm inflicted on consumers. In the months leading up to the complaint against Napleton, the FTC received 391 complaints about add-ons and other issues. However, a survey conducted over the same period revealed that 83% of respondents, or at least 16,848 customers, were subjected to the dealer’s unlawful practices related to add-ons alone. This aligns with the FTC’s experience, which suggests that consumer complaints represent only a fraction of the total number of consumers affected.
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