Dealership, owner, and former salesman settle consumer protection act violations

WICHITA, Kan. (KSNW) — The Sedgwick County District Attorney says a car dealership, its owner, and a former salesman have entered into separate consent judgments after multiple allegations of violations of the Kansas Consumer Protection Act.

The district attorney’s office says that from April to September 2020, 37 Auto Sales, 1939 N. Broadway, failed to disclose a safety recall to a buyer, and the dealership issued multiple 60-day temporary registration permits on nine transactions, a violation of Kansas law. Records from the dealership also show the titles and sales tax receipts provided to some consumers were improperly documented.

The dealership and its owner, Jacobs Lucky, agreed to a Consent Judgement without admitting to the allegations. The District Attorney’s Office called for the dealership to civil penalties of $65,000, $2,000 in investigative expenses, and over $21,000 in restitution to customers.

The dealership is also placed on three years of probation and has agreed to address safety recalls, disclose all known defects in writing prior to sale, and cooperate in any future complaints.

Lucky agreed to pay a $20,000 fine. He also has been placed on a three-year probationary period.

A former employee, Wally Sharp, was accused of failing to disclose that a vehicle had a rebuilt salvage title and that another vehicle had a transmission issue prior to selling them. He agreed to the Consent Judgment without admitting to the allegations.

Sharp agreed to pay a $10,000 fine. He has also been placed on a one-year probationary period per the agreement.

This is not the first time 37 Auto Sales has been in trouble. They entered into a Consent Judgement for violating the Consumer Protection Act in May of 2019.

KSN tried to contact 37 Auto Sales for a comment, but the line has been disconnected.

The District Attorney’s Office says you should receive certificates of title within 60 days of buying a vehicle so you can register it. If you do not receive one within 60 days, the sale is “fraudulent and void” entitling you to a refund. K.S.A. 8-135(c)(7).

Also, dealerships may only issue a buyer one 60-day temporary registration permit following the sale of a vehicle. K.S.A. 8-2409. Driving without proper registration is against the law.

The DA’s office says you should ask before you buy a vehicle if it is subject to a recall. You can check if your vehicle is subject to a recall by clicking here.