U.S. Secretary of the Army McHugh:
"Many of our Soldiers have fallen victim to predatory lending practices and...unscrupulous car dealerships and lenders." Read more...
U.S. Secretary of the Air Force Donley:
"...greater Government oversight of automobile financing and sales for our Airmen will help protect them and reduce unnecessary financial strain on our already overburdened Air Force families." Read more...
U.S. Department of Defense urges Congress to help protect troops
"The Department of Defense would welcome and encourage [Consumer Financial Protection Agency] CFPA protections provided to Service members and their families with regard to unscrupulous automobile sales and financing practices, provided such protections would not limit access to legitimate products. Read more...
Department of Defense Data Call summary: based on responses from 841 officers who provide financial counseling to all 4 branches of the United States Armed Forces. Read summary...
Star-spangled rip-off
Why car buyers in the military are vulnerable to bad deals
Edmunds.com report, posted Jan. 5, 2012
" ... some car salesmen who actively solicit military members and loudly praise their service nevertheless target them for rip-offs, frauds and overcharges." Read article...
Recently Congress granted auto dealers a special exemption from being regulated by the new Consumer Financial Protection Bureau. This, despite the fact auto lending is a $850 billion business, and auto dealers are the #1 source of consumer complaints to the Better Business Bureau and state and local consumer protection agencies.
Surprise -- campaign cash played a central role in the dealers' win against consumers, including the military.
In the past two decades, auto dealers have lavished more than $25 million in campaign contributions on Congressional candidates, with 75% going to Republicans. They have repeatedly reaped rewards in return, at the expense of consumers and taxpayers. Last year, Congress gave auto dealers more than $3,000,000 in taxpayer dollars, through the "Cash for Clunkers" program -- with no strings attached to protect car buyers from predatory dealership lending. Auto dealers have also benefited from TARP and TALF and other bailout funds.
The biggest beneficiary of auto dealer campaign cash: U.S. Sen. John McCain. He has accepted more than $717,000 from auto dealers. Despite his military background, Sen. McCain turned a deaf ear to the military community, and voted to exempt auto dealers. Ironically, Arizona has some of the most high-profile cases involving auto dealers preying on troops.
Read more: auto dealers ripping off military Servicemembers
Read more: auto dealers' campaign contributions
An End to Shady Dealers
New York Times, May 11, 2010
Even the Pentagon has weighed in, insisting that automobile purchases and dealer-assisted financing should be part of any new financial legislation because low-income military people are victimized in large numbers by shady car dealers that set up shop just outside many bases. Officials say distractions caused by these bad auto deals could affect the readiness of the armed forces. Read more...
The Pentagon versus the Auto Dealers
Huffington Post, May 12, 2010
President Obama yesterday spoke out against a "special loophole" sought by the country's auto dealers... Dealers engage in "powerbooking" and "yo-yo financing...." Read more...
The Military Coalition urges the U.S. Senate to stand up
for our troops against unscrupulous auto dealers
The Military Coalition is comprised of 31 nationally respected military advocacy organizations representing more than 5.5 million active duty military Servicemembers, veterans, their families and survivors. Read more...
Auto Dealers, Pentagon square off;
Increased oversight of loans fought
Detroit Free Press, April 25, 2010
"...an amendment by Kansas Sen. Sam Brownback to exempt car dealers from Dodd's bill 'will allow unscrupulous dealers to continue to take advantage of service members and their families.' 'We can't have lenders continuing to prey on our military families,' said Katie Savant, deputy director of government relations at the National Military Family Association." Read more...
New Front in Battle over Financial Regulation
Wall Street Journal, April 22, 2010
"...among the lobbyists crowding Congress are representatives of U.S. military personnel, who are in a pitched battle with America's car dealers....U..S. car dealers want to be excluded from new financial regulations...A coalition of more than 30 military organizations is urging lawmakers to resist the exclusion of the auto dealers, arguing that soldiers are being targeted by predatory lenders. The coalition says it is a problem affecting military readiness." Read more...
"Many of our Soldiers have fallen victim to predatory lending practices and...unscrupulous car dealerships and lenders." Read more...
"...greater Government oversight of automobile financing and sales for our Airmen will help protect them and reduce unnecessary financial strain on our already overburdened Air Force families." Read more...
"The Department of Defense would welcome and encourage [Consumer Financial Protection Agency] CFPA protections provided to Service members and their families with regard to unscrupulous automobile sales and financing practices, provided such protections would not limit access to legitimate products. Read more...
Department of Defense Data Call summary: based on responses from 841 officers who provide financial counseling to all 4 branches of the United States Armed Forces. Read summary...
Why car buyers in the military are vulnerable to bad deals
Edmunds.com report, posted Jan. 5, 2012
" ... some car salesmen who actively solicit military members and loudly praise their service nevertheless target them for rip-offs, frauds and overcharges." Read article...
Follow the Money
Recently Congress granted auto dealers a special exemption from being regulated by the new Consumer Financial Protection Bureau. This, despite the fact auto lending is a $850 billion business, and auto dealers are the #1 source of consumer complaints to the Better Business Bureau and state and local consumer protection agencies.
Surprise -- campaign cash played a central role in the dealers' win against consumers, including the military.
In the past two decades, auto dealers have lavished more than $25 million in campaign contributions on Congressional candidates, with 75% going to Republicans. They have repeatedly reaped rewards in return, at the expense of consumers and taxpayers. Last year, Congress gave auto dealers more than $3,000,000 in taxpayer dollars, through the "Cash for Clunkers" program -- with no strings attached to protect car buyers from predatory dealership lending. Auto dealers have also benefited from TARP and TALF and other bailout funds.
The biggest beneficiary of auto dealer campaign cash: U.S. Sen. John McCain. He has accepted more than $717,000 from auto dealers. Despite his military background, Sen. McCain turned a deaf ear to the military community, and voted to exempt auto dealers. Ironically, Arizona has some of the most high-profile cases involving auto dealers preying on troops.
Read more: auto dealers ripping off military Servicemembers
Read more: auto dealers' campaign contributions
New York Times, May 11, 2010
Even the Pentagon has weighed in, insisting that automobile purchases and dealer-assisted financing should be part of any new financial legislation because low-income military people are victimized in large numbers by shady car dealers that set up shop just outside many bases. Officials say distractions caused by these bad auto deals could affect the readiness of the armed forces. Read more...
Huffington Post, May 12, 2010
President Obama yesterday spoke out against a "special loophole" sought by the country's auto dealers... Dealers engage in "powerbooking" and "yo-yo financing...." Read more...
The Military Coalition is comprised of 31 nationally respected military advocacy organizations representing more than 5.5 million active duty military Servicemembers, veterans, their families and survivors. Read more...
Increased oversight of loans fought
Detroit Free Press, April 25, 2010
"...an amendment by Kansas Sen. Sam Brownback to exempt car dealers from Dodd's bill 'will allow unscrupulous dealers to continue to take advantage of service members and their families.' 'We can't have lenders continuing to prey on our military families,' said Katie Savant, deputy director of government relations at the National Military Family Association." Read more...
Wall Street Journal, April 22, 2010
"...among the lobbyists crowding Congress are representatives of U.S. military personnel, who are in a pitched battle with America's car dealers....U..S. car dealers want to be excluded from new financial regulations...A coalition of more than 30 military organizations is urging lawmakers to resist the exclusion of the auto dealers, arguing that soldiers are being targeted by predatory lenders. The coalition says it is a problem affecting military readiness." Read more...
~ Cpl. William Woods on duty in Iraq
Marine Corporal William Woods served two tours of duty in Iraq as a mortarman. He is also fluent in Arabic, and served as a translator between his command and Iraqi officials.
Congress may improve protections for military members from shady auto dealers.
Huffington Post, March 14, 2010
read more
Congress may improve protections for military members from shady auto dealers.
Huffington Post, March 14, 2010
read more
Concerns over troops getting rooked by shady car dealers have prompted the Pentagon to get involved in the fight over a Consumer Financial Protection Agency.
The Economist, March 15, 2010
read more
The Economist, March 15, 2010
read more
Pentagon brass want a new consumer watchdog agency to regulate auto dealers so they don’t rip off troops.
Politico, March 9, 2010
read more
Politico, March 9, 2010
read more
~ Cpl. Woods with Rosemary Shahan of C.A.R.S.
After a shady auto dealer refused to give him back his own car, Iraq war vet and Marine Corporal William Woods was without wheels since August, 2009. That made it hard for him to look for a job -- until CARS President Rosemary Shahan presented him a Valentine's Day gift of $3000 to purchase a used car. Cpl. Woods is all smiles at the Veterans of Foreign Wars in Sacramento, where he unwrapped his "new" used car. His dog Haley looks pretty happy too. But -- does she have a license to drive?
Update (July, 2010): "With his new set of wheels, Cpl. Woods found two new jobs, and was also able to drive to his younger brother's high school graduation.
CARS gives Iraq war vet Valentine's Day gift of a "new" used car, after dealer ripoff leaves him without wheels since last August.
CBS KPIX-TV Channel 5, February 12, 2010
read more
Update (July, 2010): "With his new set of wheels, Cpl. Woods found two new jobs, and was also able to drive to his younger brother's high school graduation.
CARS gives Iraq war vet Valentine's Day gift of a "new" used car, after dealer ripoff leaves him without wheels since last August.
CBS KPIX-TV Channel 5, February 12, 2010
read more
CARS gains enactment of new law to expand protection under California's Landmark auto lemon law to military personnel stationed in CA.
Bill passes unanimously in state Assembly and Senate, is signed by Gov. Schwarzenegger.
read more
Bill passes unanimously in state Assembly and Senate, is signed by Gov. Schwarzenegger.
read more
Lawsuit alleges that Dick Edwards Auto Plaza scammed soldiers "power booking" – financing phantom items.
Kansas City News, July 30, 2009
read more
Kansas City News, July 30, 2009
read more
"I love a mark in uniform: Kidnapping. Falsified documents. Hooters nights. Meet the sleazebucket car dealers who prey on our troops."
Mother Jones, July / August 2009
read more
Mother Jones, July / August 2009
read more
Military base declares dealerships off-limits; Ex-cons threaten soldiers.
Arizona Daily Star, July 13, 2008
read more
Arizona Daily Star, July 13, 2008
read more
Holidays are Open Season on Military Wallets; Auto Dealer Charges Marine $45,000 for $3,200 1995 Dodge Neon.
San Diego Union-Tribune, December 12, 2005
read more
San Diego Union-Tribune, December 12, 2005
read more
After car breaks down, Iraq vet wages new battle -- with dealer.
Sacramento Bee, April 14, 2005
read more
Sacramento Bee, April 14, 2005
read more
Some Creditors Make Illegal Demands on Active-Duty Soldiers.
New York Times, March 28, 2005
read more
New York Times, March 28, 2005
read more
Auto scams are #1 source of consumer headaches for troops stationed in California.
Testimony by military legal officers and representative of Navy Marine Corps Relief Society
Assembly Banking and Finance Committee hearing, March 11, 2005.
read more
Testimony by military legal officers and representative of Navy Marine Corps Relief Society
Assembly Banking and Finance Committee hearing, March 11, 2005.
read more
Car Dealers Rip Off Our Troops; Scamsters Preying On Military Families.
Dishonest repair shops, dealerships and lenders often take advantage of those in the armed services. A charity works to assist those in need.
The Los Angeles Times, April 2, 2003
read more
Dishonest repair shops, dealerships and lenders often take advantage of those in the armed services. A charity works to assist those in need.
The Los Angeles Times, April 2, 2003
read more
Marine Corps finds…
…that buying cars causes more problems than any other single financial factor, and financial problems can endanger the troops themselves, their unit, and the mission itself.
read more
read more
