© 2022 WMKY
Play Live Radio
Next Up:
Available On Air Stations
Click here to become a member of Morehead State Public Radio (WMKY - 90.3FM)

AG Beshear files lawsuit against Nicholasville car dealership

Auto Plaza

In an effort to seek restitution for customers, Attorney General Andy Beshear filed a lawsuit today (August 2) in Fayette Circuit Court against The United Group Inc., also known as Auto Plaza USA, in Nicholasville for deceptive business practices.

According to the lawsuit, the defendant, with the dealership located at 2000 Vince Rd., in Nicholasville, violated Kentucky’s Consumer Protection Act by defrauding more than 1,400 customers.

“Every Kentuckian deserves an honest and fair car buying experience,” Beshear said. “Today’s action sends a strong message that my office will defend Kentucky families against bad actors and hold dishonest businesses accountable.”

According to the lawsuit, between 2012 and 2016, the defendant collected vehicle usage taxes from customers and then falsified documents in order to avoid making the correct payment to the Kentucky Department of Revenue. As a result, customers received delinquent tax notices from the department and left owing a tax bill that, in many cases, they already paid to the defendant.

The lawsuit also alleges the defendant charged each customer a $489 fee for preparation of documents and services that were not properly performed.

Beshear’s office is seeking damages from the defendant, including approximately $465,000 in restitution for the customers who incurred additional unpaid usage tax liabilities, and $685,000 for customers affected by the bogus customer fee.

The Office of the Attorney General launched an investigation into the company’s practices and filed suit following more than 100 consumer complaints received by both the attorney general’s office and the Better Business Bureau (BBB).

Beshear said he was thankful for the BBB for working with his office to address the complaints about deceptive sales practices by the defendant.

Kim Sweazy, director of operations for the BBB serving Central and Eastern Kentucky, joined Beshear today and said the announcement reflects BBB’s commitment to its mission of advancing marketplace trust.

“When calls and complaints started coming into our BBB a few months ago from Auto Plaza USA customers alleging the same unpaid tax problem, we believed there was a serious issue,” Sweazy said. “We made the attorney general’s office aware of our concerns, and they worked swiftly toward today’s action. We applaud the attorney general’s commitment to the citizens of Kentucky and value our partnership with his office in protecting the consumers of this great Commonwealth.”

One of the critical missions of the Office of the Attorney General is to help protect Kentucky families from fraud and exploitation.

The office is charged with enforcing Kentucky’s Consumer Protection Act, which protects Kentuckians from unfair, false, misleading or deceptive acts or practices in trade or commerce.

Consumers who have experienced issues with Auto Plaza USA or any other Kentucky business may file a consumer complaint with the Attorney General’s Office of Consumer Protection at http://ag.ky.gov

(story provided by Office of the Attorney General)

Paul Hitchcock earned his Masters in Communications from Morehead State University and Bachelors in Radio-TV/Psychology from Georgetown College. A veteran broadcaster for more than 40 years and an avid fan of blues, jazz and American roots music. Hitchcock has been with WMKY since 1986 and was named General Manager in 2003. He currently hosts "Muddy Bottom Blues" (Fri., 8pm-9pm), "Nothin' But The Blues" (Sat., 8pm-12am), "Sunday Night Jazz Showcase" and "Live From The Jazz Lounge" (Sun., 8pm-9pm) and "The Golden Age of Radio" (Sun., 2pm-3pm). He also serves as producer for "A Time For Tales" and "The Reader's Notebook."
Related Content