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• Pending Government Action:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  Massachusetts Attorney General vs. Venturcap Investment Group V, LLC
  

  The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.
  
  On 9/26/2017 the Massachusetts Attorney General's office announced that it had filed suit against Venturcap Investment Group V, LLC for allegedly using predatory practices in its sale of defective vehicles with high cost loans at four locations in Massachusetts.

  The AG’s lawsuit alleges that JD Byrider took advantage of consumers by routinely trapping them in an unsustainable and unfavorable sales package, known as the “JD Byrider Program.” This program generally involves selling drivers a poor quality car with a high cost loan, along with an expensive extended service contract, marketed through an aggressive and misleading advertising and sales campaign.
  
  According to the complaint, consumers were unaware that JD Byrider priced its cars at more than double their retail value, and required drivers to sign on to a car loan with an annual percentage rate of 20 percent, regardless of their credit qualifications. JD Byrider bundles its expensive and limited extended service contract into the loan as well, forcing consumers to pay 20 percent interest on that product. To get the benefit of the service contract, consumers are then required to use a JD Byrider service center.
  
  The AG’s Office alleges that the cars sold by JD Byrider are defective and sometimes inoperable, despite misrepresentations of time and money spent reconditioning them prior to sale. Hundreds of cars have been returned by consumers to JD Byrider for repair within three months of purchase due to the mechanical breakdown of a major component such as the engine, electrical system, transmission, brakes, or drive train.
  
  The AG’s complaint further alleges that JD Byrider employs a faulty underwriting process that underestimates the consumer’s expenses and costs in order to qualify them for loans they can’t afford.
  
  As a result of these practices, the AG’s complaint alleges, more than half of JD Byrider’s deals fail or end in repossession, causing substantial and long-term economic harm to consumers not just due to the inflated costs, but due to losing transportation and suffering long term damage to their credit as well.

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