Business ProfileforPassport Mazda
Car Dealers
Current Alerts For This Business
Government Action: BBB reports on known government actions involving business’ marketplace conduct::
Federal Trade Commission v. Passport Motorcars, Inc, et al
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On October 18, 2022, Passport Automotive Group, Inc, et al (Passport) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief with the Federal Trade Commission (FTC). The order settles allegations that Passport participated in deceptive and unfair acts in violation of the FTC and the Equal Credit Opportunity Acts by adding “junk fees” on top of advertised car pricing, and charging more in financing costs and fees to Black and Latino customers. Specifically, the FTC’s complaint alleged consumers had to pay hundreds to thousands of dollars in fees for inspections, reconditioning, preparation, and certifications above the advertised price or negotiated price, which already included these fees; thus double charging consumers. Additionally, the complaint alleged Passport would increase the “buy rate” arbitrarily for credit applicants of Black (47%) and Latino (38%) buyers more often than non-Latino or Black customers. The buy rate is the lowest interest rate a purchaser of loans would buy packages of loans, and increasing it effectively raises the cost of financing for these individual auto purchasers by hundreds of dollars.
Under terms of the Stipulated Order, Passport agreed to refrain from any misrepresentation of the costs or terms of purchasing, financing, or leasing a vehicle; list whether charges are optional or required; demonstrate charges, products, or services are authorized by the consumer, and note any material fact applicable to the purchase for which a charge is incurred. Passport is further prohibited from the use of any unlawful credit discrimination practices and must implement a fair lending program. Lastly, Passport was ordered to pay $3,380,000 as monetary relief to consumers. Consumers who have questions about their payment should contact the refund administrator at 877-701-3692 or visit the FTC website. The Stipulation Order was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On October 18, 2022, Passport Automotive Group, Inc, et al (Passport) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief with the Federal Trade Commission (FTC). The order settles allegations that Passport participated in deceptive and unfair acts in violation of the FTC and the Equal Credit Opportunity Acts by adding “junk fees” on top of advertised car pricing, and charging more in financing costs and fees to Black and Latino customers. Specifically, the FTC’s complaint alleged consumers had to pay hundreds to thousands of dollars in fees for inspections, reconditioning, preparation, and certifications above the advertised price or negotiated price, which already included these fees; thus double charging consumers. Additionally, the complaint alleged Passport would increase the “buy rate” arbitrarily for credit applicants of Black (47%) and Latino (38%) buyers more often than non-Latino or Black customers. The buy rate is the lowest interest rate a purchaser of loans would buy packages of loans, and increasing it effectively raises the cost of financing for these individual auto purchasers by hundreds of dollars.
Under terms of the Stipulated Order, Passport agreed to refrain from any misrepresentation of the costs or terms of purchasing, financing, or leasing a vehicle; list whether charges are optional or required; demonstrate charges, products, or services are authorized by the consumer, and note any material fact applicable to the purchase for which a charge is incurred. Passport is further prohibited from the use of any unlawful credit discrimination practices and must implement a fair lending program. Lastly, Passport was ordered to pay $3,380,000 as monetary relief to consumers. Consumers who have questions about their payment should contact the refund administrator at 877-701-3692 or visit the FTC website. The Stipulation Order was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.
At-a-glance
Related Categories
Business Details
- Location of This Business
- Camp Springs, MD 20746-4205
- BBB File Opened:
- 3/30/2016
- Alternate Business Name
- Passport Automotive Group Inc
- Import Motorcars Inc
- Related Businesses
- Business Management
- Mr. Everrett A. Hellmuth III, Managing Principal
- Mr. Jay Klein, Vice President
- Mrs. Ashton Ryan, Communications Manager
- Contact Information
Principal
- Mr. Everrett A. Hellmuth III, Managing Principal
Customer Contact
- Mrs. Ashton Ryan, Communications Manager
- Additional Contact Information
Email Addresses
- Customer Service
Customer Complaints
3 Customer Complaints
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File a ComplaintMost Recent Customer Complaint
08/29/2023
- Complaint Type:
- Service or Repair Issues
- Status:
- Resolved
On Jan 28, 2023 we leased a car from passport Mazda. We had a trade-in Mazda leased from the same dealership which (due to the pandemic) had very low mileage so we had some equity in the car. We had a back and forth with the dealer during negotiation and having leased cars before we asked very specific questions about the residual value to ensure we were getting a fair deal. We agreed on monthly payment of $325 for 24 months (0 down) with a res value of $19,800 which we clearly marked on the paper we were negotiating with (have pictures). While we were getting ready to sign papers, the dealer had possession of our previous lease, and removed tags, requested that we removed our belongings and took away our keys, which seemed rushed but we didnt know what to do at the moment and figured everything would be ok. When we went sign the papers and saw the numbers, they were different from our agreement (higher residual, etc). Tried to back out, but that point the tags of our car had already been removed by dealer, the registrationdocuments and keys were not in ourpossession. We felt powerless, misled and out of options and felt pressure to sign, which after so many hours there (and our young children were there and hungry by that time) we did. it was not a good situation. Next day I spoke with the Manager ********************* and explained our situation. He understood, apologized and agreed to give us $1,000 and free service/maintenance for the duration of the lease. A week later or so we met in person and we shook hands; he said he had already requested and processed payment and said he had emailed me confirmation. I checked my email and not seeing anything while I was still with him he said he must have sent it to a wrong email and that I should not worry he would send it again right away and the money shortly. I have multiple emails from him to this regard promising to resolve this. I have all documented (emails from ********************* and ***********************).
Read MoreCustomer Reviews
1 Customer Reviews
What do you think? Share your review.
Most Recent Customer Review
Jordan H
1 star03/05/2024
Would not recommend buying a used car from this dealership. I bought a certified pre-owned in April 2023. A few weeks later, the paint that the detailers must have used to cover the hideous marks left by the previous owner, started to wash away after just a few car washes. After a few discussions, no one ever got back to me. So, I assume they do not care.
One day when I was randomly in the dealership for service, someone mentioned that my certified pre-owned should have come with a second key. This was not listed in the sales document. I had to find out on accident. When I tried to schedule delivery of my second key, the manager Mohammed tells me that it has been too long since I bought the car and I would have to buy the spare key. So, they owe me a spare key, and I found out on accident well after I bought the car, and they are unwilling to accept responsibility for mishandling the transaction.
I have been an excellent customer, bought all the extra care packages, and have been kind and patient with them this whole time. I even refered my wife and friend to this dealership. They couldn't have asked for a better customer. Yet, they seem to be okay with leaving me with two unresolved headaches with just one car purchase.
Passport Mazda Response
04/09/2024
Jordan, I'm really sorry to read about your experience. It's important for us that our customers feel taken care of, and I am glad we could resolve this. If you have any additional questions, please don’t hesitate to reach out. James W****, General Manager
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