Arizona Daily Star file photo

Related articles:

Arizona Honda reaches settlement with Attorney GeneralDealership to pay state $19.5K in credit case

Other articles by Shelley Shelton:

Soda-can tabs add up for ailing kids Red Rock: bliss in the booniesRed Rock is growing up Community notes Caring for little ones is a big job Marana lauds two long-timers Budget gets council's OK, but not without some cuts Public is welcome here Town puts in place new ethics policy Community notes

Construction
West-Press
Printing Health Care
Sierra Tucson
Eating Disorders Program Coordinator Finance and Accounting
Charles E. Gillman Company
Accounting Specialist Administrative & Professional
Jorgensen Brooks Group
Counselor Health Care
Dependable Health Services
Physical Therapists Health Care
CENTRAL ARIZONA COLLEGE
DIRECTOR OF HEALTH INFORMATION MANAGEMENT Sales and Marketing
Everready Glass
Sales Reps

Arizona Attorney General Terry Goddard has reached a $19,500 settlement between his office and D.W. Phillips LLC, doing business as Arizona Honda for what he said were deceptive practices to help some customers get financing when they didn't qualify.

It's the second time in less than six months that the motorcycle dealership has apparently run afoul of the law.

In September, three employees of Arizona Honda, 4710 S. Palo Verde Road, were indicted on charges of using customer credit application information — including names, birth dates and Social Security numbers — to obtain and use credit cards in those customers' names. The case is pending in federal court.

Now, the firm is suspected of helping customers get credit cards with which to purchase all-terrain vehicles or motorcycles. The state claimed that employees would write the charge was for "accessories" on the credit slip and then in financing paperwork would list the amount as a "cash down payment" or "total down payment."

Such practice infringed on the financial institution's lending policy, and such customers may not have qualified for regular financing, according to the state, which claims Arizona Honda did not inform customers of this.

The $19,500 is to be paid to the Attorney General's office for attorneys' fees, and Arizona Honda is also not allowed to claim on paperwork that a charge is for accessories if no accessories were purchased, nor can the dealership note credit card purchases as cash on financing documents.

Under the settlement, Arizona Honda must also disclose the fact that a financial institution's policy forbids using a credit card for down payments and send the Attorney General's office copies of finance-related complaints it gets from customers and other agencies for the next two years.

The general manger of Arizona Honda could not be reached for comment Friday.