Car buyer says dealer failed to disclose interest rate

A disgruntled car buyer is alleging the salesman who sold him his vehicle failed to disclose all the details of his contract so the dealership could "be paid a kickback," court papers say.

James Martin filed a deceptive trade practices suit against Classic Chevrolet (Beaumont Motor Co.) on Aug. 20 in Jefferson County District Court.

Court documents show that on March 8, 2005, the dealership through its salesman presented Martin with a retail installment contract for the purchase of a vehicle.

The suit does not say what type of vehicle.

The contract supposedly showed how much amount the vehicle was financed for, finance charges and the total cost of the vehicle. The lender was First Service Credit Union, the suit says.

Martin contends in his suit that the defendant failed to tell him that the approved annual percentage rate may be different than that which appears in his contract.

Martin alleges the dealership hid the actual APR because it "may be paid a 'kickback' based on the additional finance charge associated with the rate 'spread,'" the suit says.

"Defendant made material misrepresentations to plaintiff," the suit says. "Plaintiff acted in reliance on the misrepresentation and suffered injury."

The suit goes on to allege Classic Chevrolet was aware of Martin's ignorance and knowingly took advantage of him.

Martin is suing for punitive damages and is seeking an injunction enjoining the dealership's allegedly deceptive conduct.

He is represented by attorney Jeffrey L. Weinstein.

The case has been assigned to Judge Gary Sanderson of the 60th Judicial District.

Case No. B182-254