“How Do I Get Compensation From the DARCARS Settlement?” is what consumers want to know after the $3,000,000 DARCARS settlement in March 2025 with the Maryland Attorney General.  This blog discusses the DARCARS Settlement and explains what consumers can do if they bought a car from any Maryland DARCARS car dealer and want to see if they can recover compensation. 

The Maryland consumer rights law firm of Whitney, LLP helps consumers understand the DARCARS Settlement and claims they may have against other DARCARS dealers.  We help consumers fight back against car dealers and recover compensation and other relief after experiencing unfair and deceptive practices. 

While the DARCARS settlement highlighted multiple alleged unfair and deceptive practices at, and applies to, just one DARCARS dealer, DARCARS of Bowie, Inc. DBA DARCARS Honda, these practices may have been in effect at multiple DARCARS dealers across Maryland. 

DARCARS customers who bought a car at any DARCARS dealer have legal rights and may be able to recover compensation if they experienced similar practices.  Whitney, LLP can help.

It is important to understand that DARCARS has not admitted any liability or wrongdoing in connection with its agreement to pay $3,000,000 to the Maryland Attorney General or refund certain fees to its customers, or regarding any of the allegations discussed below, which are disputed by DARCARS.

For your Free DARCARS Contract Review and Evaluation, explained below,, call Whitney, LLP at 410 583 8000, or use our Quick Contact Form, to discuss your potential case.

Here is our YouTube Channel  for our videos on a variety of claims involving car dealers and the Maryland Consumer Protection Act.

Here is our blog for information on Whitney, LLP’s car dealer claims and settlements.  Here is our blog on DARCARS’ Sales Commission, which explains how Maryland law does not identify it as a fee that can be charged by dealers in addition to the advertised price. 

Helping Consumers with the DARCARS Settlement

The consumer law firm of Whitney, LLP has experience representing Maryland car buyers in numerous claims, arbitrations and litigation against multiple DARCARS dealers in Maryland.  Often times we are contacted by consumers about one aspect of a transaction, but after a review of the contract paperwork, find other legal issues that can be addressed.

Free DARCARS Contract Review and Evaluation

To help DARCARS customers understand the DARCARS settlement, and to understand their legal rights under Maryland law, Whitney, LLP is offering a: 

1. Free DARCARS Contract Review and Evaluation for all DARCARS car buyers; and
2. Representation with no out-of-pocket costs or fees if we can take your DARCARS case.

To get your Free DARCARS Contract Review, contact our office at 410 583 8000, or use our Quick Contact Form, and you can email, mail or drop off your paperwork at our office.  We will promptly review your DARCARS contract and provide our experienced analysis as to any potential claims and if we are able to offer representation. 

Whitney, LLP – Experienced with DARCARS Claims

Whitney, LLP has represented consumer car buyers in claims, arbitration and lawsuits against DARCARS car dealers involving a variety of claims. 

We have represented consumers in matters against various Maryland DARCARS dealers that include, but not limited to, the following allegations:

1. Charging a DARCARS Sales Commission;
2. Charging a DARCARS Sales Commission after the consumer said they did not want to pay it;
3. Adding DARCARS Assurance onto a contract after the buyer said they did not want to buy it;
4. Financing certain aftermarket products and fees despite Maryland law not allowing those to be financed;
5. Stating false information in connection with obtaining a loan for a consumer;
6. Adding unwanted aftermarket products onto a sale contract; 
7. Price increases above the advertised price;
8. Title and registration problems; and 
9. Failing to disclose a used car’s history as a rental vehicle.

What Led to the DARCARS Settlement?

Before DARCARS agreed to pay $3,000,000 and provide certain refunds to its customers, DARCARS faced allegations of multiple unfair trade practices as set forth in the Statement of Charges filed by the Maryland Attorney General, including:

• DARCARS Sales Commission – Charging an additional 2% of the vehicle’s price as a “Sales commission”, which was added onto the advertised price;
• Selling vehicles at prices higher than advertised and adding charges for preinstalled equipment and dealer markups;
• False price advertising, by deceptively advertising new vehicles for prices lower than their true selling prices because the advertised prices fail to include significant charges for dealer added equipment and markups;
• Financing the cost of the Sales Commission, DARCARS Assurance and DARCARS Protection Plan, despite Maryland law not specifying those products as able to be financed;
• Packing consumer vehicle sales transactions with unwanted equipment and products;
• Failing to disclose and itemize the costs of goods and services as required under Maryland law; and 
• Not removing products from the Buyers Order after consumers specifically decline to purchase these products.

 

Details of the DARCARS Settlement

Under the terms of the DARCARS settlement, DARCARS agreed to:

1. Refund affected customers of DARCARS Honda for unauthorized charges, including for certain sale prices above the advertised price, for sales commission fees and for add-ons purchased unknowingly;
2. Pay $3 million to the Attorney General’s Office; and
3. Cease all deceptive practices, such as hidden fees and misleading advertising.

 

How Do I Get Compensation From the DARCARS Settlement?

According to the settlement set forth in the Final Order by Consent agreed to by DARCARS, refunds will be issued to customers who purchased or leased vehicles from DARCARS Honda between January 1, 2019, and May 10, 2022. A third-party claims administrator will contact eligible consumers.

However, you do not have to wait to bring a claim to exercise your legal rights. You have the right to take legal action without waiting.

Also, it is important to understand that compensation offered by DARCARS through the DARCARS Settlement may be less than you may be able to recover when fully applying Maryland law to the entire transaction.  

For example, although as part of the DARCARS Settlement, the sales commission fee and other amounts are to be refunded, car buyers still paid tax on some of those charges and have incurred finance charges on those amounts.  The DARCARS Settlement does not state that sales tax and finance charges will be refunded as well. 

Further, Maryland law does not specify the sales commission, DARCARS Assurance and other certain add-on products as products that can be financed.  Under that Maryland law, lenders may collect only principal on loans that  include those unapproved products or fees.  What that means is that consumers who were charged for the these fees and/or products may be able to recover interest paid, or, prevent their lender from collecting any interest going forward. 

Whitney, LLP’s consumer lawyers can help you evaluate your potential DARCARS Settlement and other DARCARS claims, with no out-of-pocket fees or costs. 

DARCARS Settlement FAQ – Frequently Asked Questions 

I Bought a car from a different DARCARS dealership, can I still get compensation?

Yes, you can still bring legal claims if you believe you were treated unfairly by a DARCARS dealer other than DARCARS Honda.  However, those claims would not be part of the DARCARS Settlement reached with the Attorney General.  As discussed above, the unfair practices alleged to have occurred at DARCARS Honda may have occurred at other DARCARS dealers.  

What is the DARCARS Sales Commission Fee?

The “sales commission” fee that DARCARS charged was an additional 2% of the vehicle’s price. Despite being labeled as a “sales commission,” this fee was allegedly used to offset the commissions and compensation paid to sales staff, rather than serving its stated purpose. Maryland law does not identify a sales commission as a fee that may be added to the advertised price of a vehicle.  Our blog on DARCARS’ Sales Commission discuss this in detail.

What is DARCARS Assurance?

DARCARS Assurance is an aftermarket product sold by DARCARS dealers that offers financial incentives and vehicle care services to customers who purchase or lease vehicles from DARCARS dealerships. The program includes features like collision and stolen vehicle credits, diminished value protection, annual reconditioning, trade-in guarantees, windshield protection, and nitrogen-filled tires.  Consumers cannot be forced to purchase DARCARS Assurance, or any other aftermarket product.

  

Help with DARCARS Settlement and DARCARS Claims – Whitney, LLP

The DARCARS settlement is a reminder that car buyers have many rights under Maryland law. The Maryland Consumer Protection Act prohibits unfair or deceptive trade practices and allows consumers to seek compensation for damages.  Whitney, LLP’s consumer attorneys have extensive experience applying Maryland law for our clients to fight back and recover compensation against  car dealers’ unfair practices.

If you believe you were treated unfairly by DARCARS or another dealership, or have questions about the DARCARS Settlement, contact Whitney, LLP.  Our experienced attorneys are dedicated to holding businesses accountable and ensuring consumers receive the justice they deserve.

Contact us at 410 583 8000, or use our Quick Contact Form