A Georgia watchdog agency claims that Bill Heard Enterprises, one of the leading sellers of Chevrolet vehicles in the country, has participated in deceptive and misleading business practices.
In a statement issued Wednesday, the company denied the allegations made by the Governor’s Office of Consumer Affairs in a court filing Friday in Fulton County.
Bill Heard had filed a lawsuit against the Office of Consumer Affairs in May 2007 under the Georgia Open Records Act to obtain the names of people and dealerships who had filed complaints against the company. The state filed a countersuit in July 2007 saying the company had used misleading advertising that looked like a vehicle recall notice. The state said that advertisement violated the Georgia Fair Business Practices Act of 1975.
The Columbus-based company has five dealerships in Georgia and nine dealerships in six other states — Alabama, Arizona, Florida, Nevada, Tennessee and Texas.
The filing Friday came as the company is dealing with significant financial problems. GMAC Financial Services has discontinued credit for new inventory for some of the company’s 14 dealerships.
The Office of Consumer Affairs suit is not related to the company’s financial problems.
Consumer Affairs Director of Administration and External Affairs William D. Cloud told the Columbus Ledger-Enquirer newspaper Wednesday that attorneys in the office believed last week they were close to reaching a settlement with Bill Heard that would have included penalties, fines and an injunction barring questionable business practices in the future.
“Two years ago, we had an agreement and they walked away from it,” Cloud told the newspaper. “We had another agreement and they walked away in the last few days.”
The Office of Consumer Affairs has been investigating Bill Heard Enterprises since 2003, Cloud said. From July 1, 2005 through April 5, 2007, there were 113 complaints against Bill Heard and a total of 10 against five other dealerships, he said.
The company issued its statement Wednesday through Atlanta public relations professional Alan Ulman.
“We have consistently stated that we have policies and procedures in place that require and enable legal, ethical and fair business practices including advertising and finance,” the statement says. “We deny the allegations, will continue to work constructively with the Office of Consumer Affairs, and will address their specific questions directly with them.”
Fulton County Superior Court Judge Marvin Arrington on March 6 ruled in favor of Bill Heard Enterprises in the Open Records Act suit. The Office of Consumer Affairs appealed the order to release the names. No ruling has been issued on the appeal.
The Office of Consumer Affairs has asked the court for a jury trial. It is also seeking civil penalties of up to $5,000 per violation and payment of the state’s attorney fees.
While the state’s earlier complaint against Bill Heard focused on misleading and deceptive advertising, Friday’s filing alleges questionable business practices.
The practices include charges against various Bill Heard dealerships in Georgia. According to court documents, they include: failing to pay off loans on trade-ins, making the consumer liable for the bank note on both vehicles; misrepresenting a vehicle’s value to third-party lenders to secure financing for customers by saying options and extra features have been added to a vehicle when they have not, and forging customer signatures.
The court documents say that the Atlanta Better Business Bureau revoked the accreditation of Bill Heard’s Atlanta dealerships on June 12.
The company has been working since last week to secure new financing to buy inventory since GMAC discontinued its credit. Bill Heard said in a statement Wednesday that its current financial difficulties are a result of a “very challenging but surmountable business environment” caused by “adverse economic conditions, high gasoline prices and our traditional product mix.”
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