HARRISBURG, PA — Attorney General Dave Sunday announced that The Rosado Group, Inc., a network of northeastern Pennsylvania auto dealerships, has agreed to a $130,000 settlement following allegations of deceptive sales tactics and improper credit practices.
According to the Office of Attorney General, dealerships under the Rosado umbrella allegedly inflated vehicle prices without notifying customers and manipulated credit applications to increase sales. These actions, regulators said, violated both the Pennsylvania Automotive Industry Trade Practices and the state’s Unfair Trade Practices and Consumer Protection Law.
As part of the settlement, Rosado will pay $100,000 in restitution to consumers and an additional $30,000 in penalties to the Commonwealth. Impacted customers who previously filed complaints will automatically be eligible for restitution without further action.
“This dealership network engaged in a pattern of deceptive practices that prioritized their own sales figures over transparency to customers who deserve fair and honest treatment,” Attorney General Sunday said, while noting the group’s agreement to improve compliance measures.
The Rosado Group operates several dealerships, including Dickinson City Hyundai, Lehighton Kia, Milford Chrysler Dodge Jeep Ram, and Performance Kia.
In connection with the settlement, The Rosado Group released the following statement:
“The Rosado Group has reached an agreement with the Pennsylvania Office of Attorney General to resolve a regulatory matter. This agreement includes no admission of wrongdoing. We chose this resolution because dragging out a court fight would waste time and money that would be better spent on our customers and our community.
“That’s why we’re doubling down on customer care. Every used car we sell, that does not have a manufacturer’s warranty, comes with a three-month, 3,000 mile powertrain warranty at no additional cost. On top of that, we’re strengthening our training programs and hiring staff soley dedicated to compliance, ensuring every step of the buying process is clear, fair and transparent.
“For decades, our family of dealerships has invested in Pike, Monroe, Lackawanna and Carbon counties. Our customers are and have always been our top priority — and nothing will distract us from standing by the people who count on us.
“Our message is simple: we’re here for our customers. Always have been. Always will be.”
— Bill Rosado, Founder and President, The Rosado Group
The Assurance of Voluntary Compliance, filed in Lackawanna County Court of Common Pleas, requires the dealerships to bring sales and credit practices into compliance with state and federal law. Under the agreement, Rosado must hire a compliance officer approved by the Attorney General’s Bureau of Consumer Protection, provide clearer disclosures on financing terms, and offer a 90-day, 3,000-mile powertrain warranty on vehicles sold outside manufacturer coverage.
The settlement further mandates stricter transparency regarding vehicle condition, particularly for used cars, and clearer communication on financing terms, including loan length, monthly payments, and responsibility for repayment.
The Assurance of Voluntary Compliance does not constitute an admission of wrongdoing by Rosado but establishes enforceable commitments to change its business practices.
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