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More customers of a Halifax-area used car dealership are speaking out and alleging fraud, as RCMP confirm the number of complaints they’re investigating against Race Auto Group in Lower Sackville has more than doubled since yesterday.
Among the concerned customers is Lisa Marr, who says she’s on the hook for $60,000 — paying for loans on two cars that she doesn’t even possess and a vehicle she can’t register.
“So worried about repossession, worried about registration, basically worried about everything,” said Lisa Marr. “I won’t drive my car right now because I’m scared to.”
Marr says she traded in two of her vehicles earlier this year to the Lower Sackville, N.S., dealership and purchased a pre-owned vehicle from them in March.
Since then, however, she says she’s discovered she can’t register her new vehicle because she alleges Race Auto didn’t release the paperwork.
She says the business also told her they were sending a cheque to her lender to pay the remaining balances on the two vehicles she traded in, but that cheque bounced.
“So it’s been a really big nightmare. Not knowing if my car is my car, not knowing if it’s somebody else’s car, not knowing what happened to my old cars,” she said.
“We struggle to buy groceries, let alone pay for three cars. My car payments are $1,400 a month for the three cars and I have no idea where they are.”
Marr says she filed a report with RCMP on Friday.
RCMP confirmed they’re now investigating 49 reports in relation to Race Auto Group’s two Lower Sackville locations on Sackville Drive and Cobequid Road.
That figure is up from 20 reports RCMP confirmed on Thursday.
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“We are reviewing all the circumstances that are being reported, so from the customers as well as the owner of the business,” said spokesperson, Cpl. Mandy Edwards.
“And then once the review is completed, it’ll be investigated whether there’s any criminal offences that have occurred.”
Frustrated customers have joined a Facebook group to share their stories and discuss possible legal action.
On Wednesday, a large group of customers arrived at the Sackville Drive location demanding answers. In a statement, RCMP confirm they were called at around 11:30 a.m. after the owner of the business reported “several customers and employees had attended the location demanding money and property, and had caused damage.”
Officers were called to de-escalate the situation.
Race Auto Group has not responded to Global News’ multiple requests for comment about the allegations.
Complaints with Service Nova Scotia
The Department of Service Nova Scotia told Global News in a statement that it has received about 18 complaints so far through their online consumer complaint form regarding “the trade-in issue” with Race Auto Group.
As for suggestions on what impacted customers can do, the department suggested people call their credit provider or lender.
“If a client has set up pre-authorized or recurring payments directly with Race Auto Group, they may also consider contacting their financial institution to cancel or stop future payments,” the department added.
“Customers with financing through third-party lenders should continue to follow their loan agreements and confirm next steps directly with their lender.”
BBB accreditation suspended
On its website, the Better Business Bureau (BBB) said it had suspended Race Auto Group’s BBB accreditation as of Tuesday “due to a failure to address marketplace disputes quickly, professionally, and in good faith.”
“The matter will be reviewed by the BBB’s Board of Directors at its next meeting,” the BBB wrote on its website.
The BBB also listed a pattern of complaints, including trade-in lien payouts that were ‘not completed or significantly delayed,” and “consumers continuing to be pursued by lenders for outstanding balances related to trade-ins.”
The BBB noted it had submitted a written request to the business back in January “encouraging them to address the pattern of complaints.”
The business responded on March 21, the BBB said, and advised they were taking several steps including hiring an accounts payable representative “dedicated to processing loan payouts and improving timelines of lien and loan payouts.”
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