John Howerton Honda is facing serious legal challenges with thirteen lawsuits filed against the Beckley, West Virginia dealership. The lawsuits, lodged in Raleigh Circuit Court, accuse John Howerton Honda of negligence in conducting vehicle sales that plaintiffs claim should not have been approved.
According to the suits, the plaintiffs, including Tabree Hamby, Alphonso Thomas, and others, visited John Howerton Honda after hearing about the dealership’s reputation for assisting individuals with poor credit to purchase vehicles, or because of advertised sales events. These individuals, employed at places like TZ Insurance and Sally’s Beauty Supply, sought to buy vehicles in 2015.
Upon arriving at John Howerton Honda, the plaintiffs allege they were approached by salespersons from Top Gunz Marketing. These individuals, acting on behalf of John Howerton Honda, reportedly functioned as both sales and finance/insurance agents. The lawsuits argue that John Howerton Honda was aware, or should have been aware, that the plaintiffs possessed limited experience in car purchasing and financing.
Plaintiffs claim they communicated their budget constraints for monthly car payments to the salespersons. They were allegedly assured that if the initial payments exceeded their budget, they could refinance their vehicle loans within three months to secure more affordable monthly payments. Subsequently, these salespersons submitted online credit applications to Santander Consumer USA (SCUSA), which then agreed to finance the retail installment sales contracts (RISC) for these purchases. The suits contend that SCUSA did not independently verify income or other crucial information provided by the salespersons. The plaintiffs later discovered that false information had been used by the salespersons in their loan applications.
It’s highlighted in the lawsuits that Santander Consumer USA has a history of similar issues. SCUSA previously reached settlements with the Attorneys General of Maryland and Delaware concerning unfair, high-interest rate loans given to individuals unable to afford them. The lawsuits against John Howerton Honda argue that the dealership failed to inform the plaintiffs that they were ineligible to purchase vehicles without the submission of falsified information to SCUSA and the manipulation of sales terms.
Unable to manage the unexpectedly high monthly payments and facing SCUSA’s refusal to refinance their loans, the plaintiffs were forced to cease payments, leading to the repossession of their vehicles by SCUSA. The lawsuits assert that John Howerton Honda acted negligently and violated West Virginia state code.
The plaintiffs are pursuing both compensatory and punitive damages. They are legally represented by Paul W. Roop II of Roop Law Office. Mr. Roop has not yet issued a public statement regarding these ongoing cases in Raleigh Circuit Court, case numbers 18-C-509 through 18-C-524.
