In the Kentucky case, what specific unfair sales practices were alleged against the Louisville Byrider franchisee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
alleged violations.
Commonwealth of Kentucky ex rel Gregory D. Stumbo, Attorney General vs. James Maguire, J. Marc Maguire, Auto Acceptance Corporation, CNAC of Kentucky, Inc., J. Maguire Enterprises, Inc., Auto Acceptance, LLC, CNAC of Kentucky, LLC, J. Maguire Enterprises, LLC, and J.D. Byrider Systems, Inc. (Cause No. 04Cl10575) filed on December 16, 2004, in Commonwealth of Kentucky, Jefferson Circuit Court, Division Nine. Complaint against J.D. Byrider Systems, Inc. and the Louisville franchisee alleging violation of Kentucky's Consumer Protection Act by a pattern of unfair and deceptive sales and financing practices engaged in by the Louisville franchisee, aided and abetted by unlawful sales and financing techniques developed by J.D. Byrider Systems, Inc. For purposes of settlement only, an Agreement and Consent Judgment Entry and Order were filed February 2006 in the Commonwealth of Kentucky, Jefferson Circuit Court, Division 7. The court enjoined J.D. Byrider Systems, Inc. and its Kentucky franchisees from violating the Kentucky Consumer Protection Act, the federal Truth in Lending Act, and the federal Magnuson Moss Warranty Act and ordered remedial steps for the alleged violations; J.D. Byrider Systems, Inc. paid $300,000.00 to the Attorney General as reimbursement, attorneys' fees and other costs of the investigation and litigation. The Louisville franchisee paid $2.7 million in customer restitution. In addition, the Louisville franchisee agreed to provide a credit of $500 on each customer account for vehicles purchased during 2000 through 2004. The Louisville franchisee is no
Source: Item 3 — Litigation (FDD pages 15–19)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a complaint was filed against Byrider and its Louisville franchisee on December 16, 2004, alleging violations of Kentucky's Consumer Protection Act. The Attorney General of Kentucky claimed that the Louisville franchisee engaged in a pattern of unfair and deceptive sales and financing practices. The complaint also stated that Byrider aided and abetted these practices by developing unlawful sales and financing techniques.
In February 2006, an Agreement and Consent Judgment Entry and Order were filed in the Commonwealth of Kentucky, Jefferson Circuit Court, Division 7, to settle the case. The court issued an injunction against Byrider and its Kentucky franchisees, preventing them from violating the Kentucky Consumer Protection Act, the federal Truth in Lending Act, and the federal Magnuson Moss Warranty Act. The court also ordered remedial steps to address the alleged violations.
As part of the settlement, Byrider paid $300,000 to the Attorney General to cover reimbursement, attorneys' fees, and other costs related to the investigation and litigation. The Louisville franchisee paid $2.7 million in customer restitution. Additionally, the Louisville franchisee agreed to provide a $500 credit on each customer account for vehicles purchased between 2000 and 2004. The Louisville franchisee is no longer a franchisee of Byrider.