Lawsuit Filed Against Global Auto Outlet
On August 3, 2020, Whitney, LLP filed a lawsuit against Barakat, Inc. D/B/A Global Auto Outlet, 4608 St. Barnabas Road, Temple Hills, MD 20748, in Prince George’s County.
The lawsuit alleges that Global Auto Outlet violated Maryland’s Spot Delivery law and Maryland’s Consumer Protection Act, and alleges Fraud, and seeks more than $75,000 in compensation. According to Global Auto Outlet’s website, it serves customers in Temple Hills, Waldorf, Laurel, Woodbridge and Manassas.
The allegations in the lawsuit, which are disputed by Global Auto Outlet, are discussed below, and include:
- Charging a $999 dealer processing fee instead of Maryland’s legal limit of $500;
- Selling cars as Unique Auto Import, a Virginia car dealer, instead of Global Auto Outlet;
- Keeping a $10,000 down payment when financing was not approved and the car was returned; and
- Charging $2,421 over the Online Advertised Price;
We provide Free Consultations to buyers who purchased a car from Global Auto Outlet in Temple Hills, MD. If you purchased a car at Global Auto Outlet, our attorneys will review your sale and finance documents, free of charge, to determine if you were the victim of any unlawful practices. Our clients in cases against car dealerships pay no out-of-pocket fees or costs.
Whitney, LLP’s consumer lawyers help car buyers unwind bad car deals and recover compensation for car buyers who were treated unfairly. Call Us Now at 410 583 8000, or use our Online Quick Contact Form, to discuss your potential case.
Here are reviews from what some of our past clients have said about us, and here are some of our past settlement results in claims and lawsuits against car dealerships.
Charging $999 Processing Fee Instead of $500, the Maryland limit.
Maryland law limits what dealerships may charge buyers as a processing fee. Prior to July 11, 2020, $300 was the legal limit. Since July 11, 2020, $500 was the legal limit. Despite being located in Maryland, and selling our client the vehicle in Maryland, Global charged her $999.
If you were charged more than Maryland’s legal limit of $300, or $500 since July 11, 2020, as a processing fee, call Whitney, LLP. We may be able to help you recover compensation at no cost to you.
Selling as Unique Auto Import, Dumfries, VA instead of Global Auto Outlet in Temple Hills, MD.
Although our client went to Global’s dealership in Temple Hills, they listed Unique Auto Import, 17970 Fraley Blvd, Dumfries, VA 22026 as the seller on both the Buyer’s Order and Finance Contract.
If you purchased a car from Global, but they put Unique Auto Import on the Buyer’s Order or Finance Contract, call Whitney, LLP. We may be able to help you recover compensation. Maryland law requires dealers to be licensed to sell cars in Maryland.
Keeping the $10,000 Down Payment When Financing Not Approved
Our client purchased the vehicle on July 11, 2020. Several days later, she was asked to sign another set of documents with different terms. She called the credit union, Educational Systems Federal Credit Union, and asked what was going on. She was told by the credit union that financing had not been approved. Global did not return her $10,000 down payment, although she returned the car to Global’s dealership once she learned financing had not been approved.
In Maryland, the law requires that dealers provide a special notice, signed by the customer and dealer, when financing is not approved at the time the customer drives off the lot in the new car.
If financing is not approved at the time of delivery, Maryland law requires:
- The trade-in must be immediately returned to the customer;
- The entire down payment must be immediately returned to the customer;
- The dealer has 4 days to provide a written notice to the customer; and
- The customer has the right to cancel the deal or negotiate new terms.
If you purchased a car and financing was not approved, and a dealership refused to immediately return 100% of your down payment, or your trade, call Whitney, LLP. We have helped many car buyers recover their down payments and unwind deals when financing was not approved.
Charging $2,421 over the Online Advertised Price
Global advertised the vehicle, a 2019 Toyota Corolla, on its website for $12,800. When our client went to the dealership, Global refused to sell it to her for $12,800, and instead increased the price to $15,221. Maryland requires dealerships to honor the advertised price.
If you saw a vehicle listed online for a low price, and after arriving at the dealership were sold the vehicle for a higher price, contact Whitney, LLP. We may be able to help you recover compensation at no cost to you.
Whitney, LLP’s Lawyers Help Car Buyers
Buying a car can be a confusing experience with the many documents you are asked to sign and the many numbers being thrown around. However, Maryland law protects car buyers, and regulates many areas of the sales and finance auto transactions, including what dealerships may operate in Maryland, how they can operate, and limits on the interest rate, sales tax and dealer processing fees.
Call Whitney, LLP today for your Free Consultation at 410 583 8000, or use our Online Quick Contact Form. We offer Free Consultations.
Whitney, LLP represents car buyers across Maryland, including those who live in Temple Hills, Waldorf, Laurel, Woodbridge, Manasses and Washington, DC, who purchase new and used cars and SUVs from Maryland dealerships.