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Bangor Used Car Dealer Banned from Doing Business
July 31, 2014
AUGUSTA – The Attorney General has taken action to ensure that Glenn Geiser and his affiliated businesses will be banned from doing business for seven years. “In addition,” Attorney General Mills stated, “the companies Mr. Geiser relied on to exploit consumers will not do business with him in the future. This should stand as a warning to any business that thinks it can cut corners and abuse Maine consumers.”
Under the terms of the proposed consent judgment, Geiser and his used car dealerships, My Maine Ride and Bumper2Bumper, Inc., will be out of business until 2021. Additionally, some consumers will be eligible for partial restitution for repair costs and may be eligible for forgiveness of loan balances on repossessed cars.
The Attorney General has reached agreements with seven finance companies that provided financing to consumers who purchased vehicles from Geiser. The Federal Trade Commission’s “Holder Rule” subjects the finance companies that hold the consumers’ loans to the same claims that consumers have against Geiser for selling them unsafe and defective vehicles. Maine’s version of the Holder Rule is in the Maine Consumer Credit Code.
Geiser will not be able to apply for the business licenses that are required to operate a car dealership, repair shop, or inspection station or work for one if it is owned or operated by a member of his household for the next seven years. Geiser and his companies will also pay some restitution for consumers whose vehicles failed inspection within 30 days of purchase or became inoperable or unsafe within 90 days of purchase because of a mechanical defect that was not disclosed.
The finance companies that provided financing for Geiser’s customers - Persian Acceptance Corporation, Westlake Services, LLC, Mid-Atlantic Finance Company, Source One Financial Corporation, Consumer Portfolio Services, Inc., United Auto Credit Corporation and Credit Acceptance Corporation - have cooperated with the Office of the Attorney General in resolving this case. “We appreciate the willingness of these companies to provide relief to consumers who are stuck with loan payments for cars that were essentially worthless,” said Attorney General Mills.
The finance companies have agreed to stop collection actions for consumers whose vehicles were repossessed – essentially erasing the debt – and to remove all negative information relating to these loans from consumers’ credit reports. In addition, all have agreed that they will not provide financing for any future business owned or operated by Geiser.
This proposed consent judgment in this civil matter relates to Glenn A. Geiser, Jr. and his two companies, Bumper2Bumper, Inc. and My Maine Ride. There is separate civil litigation continuing against Bangor Car Care, Inc., which is owned by Geiser’s mother.
The agreements with the finance companies are available on-line at http://www.maine.gov/tools/whatsnew/attach.php?id=624468&an=3. Consumers who purchased a vehicle from a Geiser dealership and have a loan with any of the seven finance companies can call 1-800-436-2131 or email email@example.com to obtain more information on how the settlements may affect them.
The case was handled by Assistant Attorneys General Carolyn Silsby and Linda Conti.