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State Files Suit Against Used Car Dealers

Hollywood Auto Gallery Investigated After Local 10 Report

POSTED: Friday, November 6, 2009
UPDATED: 4:11 am EST November 9,2009

The Florida State Attorney General’s office is taking action following a Local 10 investigation.

Florida Attorney General Bill McCollum said his office has filed a lawsuit against several related used car dealers over allegations of deceptive and unfair business practices.

Hollywood Auto Gallery, Inc. and owner Zachary S. Kessler have been the subject of numerous complaints filed with the attorney general’s office, all referencing the warranties advertised by Kessler and his related businesses.

The Attorney General’s Economic Crimes Division determined that Hollywood Auto Gallery, Inc., located in Pompano Beach, allegedly advertised that all vehicles sold were under warranty, and Kessler verbally assured consumers that the vehicles would be covered. In reality, the warranty was only a limited warranty good for a maximum of $500 in repairs.

Additionally, Kessler allegedly assured all potential consumers that once a deposit was made on a vehicle to hold it, a mechanic could look at the vehicle within three days of the deposit. But consumers who attempted to have their mechanics examine the vehicles were allegedly told the deposit committed them to purchasing the vehicle, regardless of the mechanic’s diagnosis, Local 10's Jeff Weinsier reported.

According to consumer complaints, the vehicles sold by Kessler and his company were in such bad condition that they were not road worthy and would often break down just miles from the car lot. Mechanical problems cited included a transmission that was completely worn out and an engine that needed a total overhaul. Consumers also reported they were unable to obtain refunds for the vehicles.

The lawsuit seeks injunctive relief against Hollywood Auto Gallery, Inc., and several related businesses operating under fictitious names, including UltimateCarDeal.com, CashOnlyAuto.com, and CheapestCarsInFlorida.com, as well as Kessler himself, Weinsier reported.

The relief requested would prohibit further business activities in the sales of used vehicles, restitution on behalf of all victimized consumers, civil penalties of $10,000 to $15,000 for each violation of the Florida Unfair and Deceptive Trade Practices Act, and reimbursement for fees and costs related to the investigation.

Consumers with a complaint about Hollywood Auto Gallery, Kessler or any of the related company names can contact the Attorney General’s Office at 866-966-7226 or file a complaint with the attorney general's office online.
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