The Ghost of Bill Heard Haunts Trade-Ins

Now that Bill Heard’s Chevy-heavy dealership chain has entered Chapter 11, thanks to gas prices the consumer credit squeeze the economic meltdown increased floorplan costs the owner’s greed, avarice and criminal business practices, you’d think it was time for the pain to stop. As if. The Georgia Governor’s Office of Consumer Affairs has issued a postmortem Consumer Alert. As much-missed tipster Frank Williams puts it, “apparently, Bill heard is screwing over some customers when it comes to paying off their trade-ins.” More technically, “If you are a consumer who has recently purchased a vehicle from one of these dealerships, and traded in a car or truck as part of this purchase, but the dealership has failed to pay off your trade-in, you may have some recourse under what is known as the Federal Trade Commission’s “holder” rule, 16 CFR 433.” How screwed are these people? How would you like to be looking at the following advice?

“First, contact the company that is financing your trade-in, and explain the circumstances, that the car you are financing with them should have been paid off by Bill Heard, and that the car is physically in Bill Heard’s possession. Provide any documentation to this effect (such as any contracts you have signed with Bill Heard) to the finance company, and be able to provide the street address and phone number of the dealership. Ask them to work with you so that the situation does not negatively impact your credit, if, for instance, there are outstanding payments owed on the trade-in vehicle due to Heard’s failure to make the pay-off. Remember that you are still legally, contractually bound to make payments to the finance company on your trade-in, even though Bill Heard has taken possession of it. You are also legally responsible to maintain insurance on the vehicle.”

Question: do you think Honda or Toyota would have knowingly allowed their dealers to get away with this shit? Do you think GM execs were oblivious to the lawsuits, judgements and penalties against “Mr Volume?” Once again, I smell a class action lawsuit against GM on this one.