LITTLE ROCK — The state attorney general’s office sued a North Little Rock used car dealer Monday, claiming violation of the Arkansas Deceptive Trade Practices Act and the state Salvage Title Act.
The lawsuit, filed in Pulaski County Circuit Court, accuses Chidi Ukegbu, who operates America’s Pre-owned Selection — formerly known as Scales Auto — of failing to provide a clear title to car buyers, rendering the vehicle unable to be registered or insured.
The lawsuit also alleges Ukegbu or his agents illegally changed the terms of financing contracts already signed by buyers and selling a car without disclosing the vehicle had been salvaged. It claims Ukegbu repossessed a vehicle because the buyer did not obtain insurance, even though it allegedly was Ukegbu’s failure to disclose the salvage nature of the vehicle that caused it not to be insured.
“Those who have had the misfortune of doing business with this car dealer have told our Consumer Protection Division that they have been deceived about contract terms or stonewalled when it comes to receiving the clear title they need to register and insure a vehicle,” Attorney General Dustin McDaniel said. “We hope the court provides a remedy for the affected consumers.”
The attorney general’s office asked the court to issue an injunction to prohibit Ukegbu from continuing the practices, order him to comply with requests from consumers for refunds, and to assess civil penalties.
No one answered a directory assistance telephone listing for America’s Pre-owned Selection on Monday.