The URL can be used to link to this page

Home My WebLink About98-00066 COMMONWEALTH OF PENNSYLVANIA BY A1TORNEY GENERAL D. MICHAEL FISHER IN TIlE COURT OF COMMON PLEAS, CUMBERLAND COUNTY PENNSYLVANIA Plaintiff v. CIVIL ACTION - EQUITY RAFAEL BELUDO, d/b/a SABEC'S AUTO SALES N\)o q~- Lelo Respondent ASSURANCE OF VOLUNTARY COMPUANCE WHEREAS, the Commonwealth of Pennsylvania, acting by Attorney General D. Michael Fisher, through the Bureau of Consumer Protection ("Commonwealth"), has caused an investigation to be made into the business practices of Rafael Bellido, doing business as Sabec's Auto Sales ("Respondent"), pursuant to the Unfair Trade Practices and Consumer Protection Law, 73 P.S. ~~ 201-1-201-9.2 ("Consumer Protection Law"), the Automotive Industry Trade Practices Regulations, 37 Pa, Code ~~ 301.1-301.6 ("Auto Regs"), the Motor Vehicle Sales Finance Act 69 P.S. ~~ 601-637, federal regulations 16 C.F.R. ~~ 455.1-455.7, and the Vehicle Code, 75 Pa. C.S. ~~ 101 ~ WI.; and WHEREAS, the Respondent, Rafael Bellido, is an adult individual, engaged in trade or commerce within the Commonwealth through the operation of a motor vehicle dealership, using the fictitious name Sabec's Auto Sales, from a principal place of business located at 114 Sporting Hill Road, Mechanicsburg, Cumberland County, Pennsylvania 17055. The Respondent possesses vehicle dealer license number VD-020426 and previously operated from 900 Market Street, Lcmoyne, PA 17043: and WHEREAS, based upon its investigation, the Commonwealth asserts that Respondent Bellido engaged in conduct violative of the Consumer Protection Law, 73 P.S. ** 201-1-201- 9.2, the Auto Regs, 37 Pa, Code ** 301.1-301.6, the Motor Vehicle Sales Finance Act 69 P,S. ** 601-637 ("MYSFA"), federal regulations 16 C.F.R. ** 455.1-455.7, and the Yehicle Code, 75 Pa. C.S.A. ** lOll:.! WI., as more fully set forth herein: 1. The Respondent utilized a sales agreement which failed to contain or state the Respondent's address and the make, model, year and vehicle identification number of the vehicle purchased or the consumer's trade-in vehicle. which practice the Commonwealth asserts is in violation of * 301.4(a)(2)(i) and (ii) of the Auto Regs and * 614A of the MYSFA; 2. The Respondent utilized a sales agreement which failed to contain or state the total purchase price of the vehicle and a description of the vehicle as new or used and, if used, a description of the prior usage, which practice the Commonwealth asserts is in violation of * 301.4(a)(2)(iii) and (iv) of the Auto Regs: 3. Respondent Bellido failed to provide consumers Paulita Yidot and Louis Quinones with copies of documents required by law such as an odometer disclosure statement and a FTC Buyer's Guide, which practice the Commonwealth asserts is in violation of * 301.4(a)(3) of the Auto Regs; 4. The Respondent failed to submit registration taxes to the Pennsylvania Department of Transportation ("PaDOT") within the time prescribed by law and failed to submit title and registration documents to PaDOT in regard to the vehicle sold to Paulita -2- " Vldot. which practicc thc Commonwealth asserts is in violation of ~ 301.4(a)(10) of the Auto Regs; 5, Respondent Bellido failed to provide at lea.~t six consumers with an odometer mileage statement or other acceptable disclosure form prior to or at the time of sale, as required by ~ 7134(a) of the Vehicle Code; 6. Respondent Bellido failed to retain a copy of the odometer mileage statement related to its transaction with at least those six consumers, as required by ~ 7135(a) of the Vehicle Code; 7. Respondent Bellido's violations of ~~ 7134-7135 are deemed by ~ 7137 to be a violation of the Consumer Protection Law, 73 P.S. ~~ 201-1-201-9.2; 8. Respondent Bellido sold vehicles to at least thirty-five (35) consumers on an installment sale contract without being licensed by the Department of Banking. which practice the Commonwealth asserts is in violation of the MVSFA. 69 P.S. ~ 604; 9. Respondent Bellido's sale of vehicles on an installment sale contract without being licensed misrepresented and caused a likelihood of confusion or misunderstanding as to his certification by the Department of Banking, which practice the Commonwealth asserts is in violation of ~ 201-2(4)(iii) and (v) of the Consumer Protection Law; to. Respondent Bellido failed to have consumers sign the installment sale contracts, which practice the Commonwealth asserts to be a violation of ~ 613A of the MVSFA; 11. Respondent Bellido failed to use installment sale contracts that contained the required "Notice to Buyer" in violation of ~ 6130 of the MVSFA; -3- " 12, The Respondent failed to oblllin writtenllcknowledgment from consumers that Ihey hlld receivcd their copy of the con!ruct, which pructice lhe Commonwealth asserls 10 be in vlollltion of ~ 613E of the MVSFA: 13, Respondent Bellido utilized insllllhnenl sllle contracts which were deficient in conlent and format regarding cost, finance charge, and repayment information, etc., In violation of ~ 614B of the MVSFA: 14. Respondent Bellido failed to clearly state on the installment sale contracts the collateral security taken for the consumers' obligations under the contracts in violation of ~ 614C of the MVSFA; 15. Respondent Bellido utilized installment sale contracts which failed to contain the required legal notices and provisions regarding prepayment, rebates of finance charges, reinstatement of contracts, default charges and repossession, etc., in violation of ~ 614D and E of the MVSFA; 16. The Respondent's alleged violations of the MVSFA would constitute per se violations of the Consumer Protection Law, 73 P.S. ~~ 201-1-201-9.2; 17. On May 28, 1997, an agent of the Commonwealth visited the Respondent's dealership and discovered that seven of twelve vehicles offered for sale failed to have a FTC Buyer's Guide displayed on the vehicles in violation of the federal Used Motor Vehicle Trade Regulation Rule, 16 C.F.R. ~ 455.2; 18. The Respondent's alleged violations of the federal regulation would constitute per se violations of the Consumer Protection Law, 73 P.S. ~~ 201-1-201-9.2; -4- .' 19. Respondent Bellido sold a vehicle to consumer Vidot on February 28, 1997, but failed 10 have lhe consumer sign the assignment of title, which practice the Commonwealth asserts is in violalion of lhe Vehicle Code, 75 Pa, C,S.A. ~~ IIII (a) and 1119(b); 20. Respondent Bellido's alleged violalions of the Vehicle Code conslitules per se violalions of lhe Consumer Proteclion Law. WHEREAS, Respondenl Bellido has agreed 10 cease and desist from the aforementioned conducl, and desires 10 comply with these civil laws of the Commonwealth; and WHEREAS, under lhe Consumer Protection Law, this Assurance of Voluntary Compliance shall nol be considered an admission of a violation for any purpose; and WHEREAS, the Commonwealth is agreeable in this matter to accept this Assurance of Voluntary Compliance, pursuant to ~ 201-5 of lhe Consumer Protection Law, in lieu of commencing proceedings pursuant to ~ 201-4 of the Consumer Protection Law. NOW THEREFORE, while engaging in trade or commerce within the Commonwealth of Pennsylvania, Respondent Bellido agrees for himself, his officers, partners, representatives, employees, future corporations and all other persons acting on his behalf, jointly or individually, directly or through any Corporate or business device, as follows: I. Respondent Bellido shall comply with any and all provisions of the Consumer Protection Law, Auto Regs, Vehicle Code, MVSFA, and FTC Buyer's Guide Rule, and is permanently enjoined from any violalion thereof. -5- " I" i I I, ~ ' ,,~ " II, Respondent Bellido shall immediately procure the appropriate license from the Department of Banking, as required by the MVSPA, and be enjoined from entering into any installment sale contracts with consumers and collecting or receiving interest payments from consumers until said license is obtained. III. Respondent Bellido recognizes that any and all installment sale contracts entered into by him prior to possessing the required license are unenforcible within the Commonwealth of Pennsylvania pursuant to ~ 635 of the MVSF A, The Respondent shall be permanently enjoined from repossessing any vehicle pursuant to those contracts, initiating litigation for any default against consumers who purchased vehicles pursuant to those contracts, and attempting to enforce the contracts in any other manner. IV. Upon signing this Assurance of Voluntary Compliance, Respondent Bellido agrees that he shall respond in writing to any written complaint filed with the Office of Attorney General, Bureau of Consumer Protection, within ten (10) days of receiving notice thereof. V. Respondent Bellido shall pay seven hundred and ninety-three dollars and fourteen cents ($793.14) to the Commonwealth to be used as consumer restitution and distributed to Louis Quinones. VI. Respondent Bellido shall pay one thousand dollars ($1,000.00) to the Commonwealth as a civil penalty. VII. Respondent Bellido shall pay two thousand dollars ($2,000.00) to the Commonwealth as costs of investigation andlor for future public protection purposes. -6- VIII, The Respondent shall pay the total sum of three thousand seven hundred and ninety-three dollars and fourteen cents ($3,793.14) in accordance with the following payment plan, any violation of which shall be considered a violation of this Assurance: a. Upon signing the Assurance, the Respondent shall pay to the Commonwealth two hundred dollars ($200.00) to be used as consumer restitution; b, On January 31, 1998, and on the last day of February, the Respondent shall pay to the Commonwealth two hundred dollars ($200.00) to be used as consumer restitution. On the last day of March, the Respondent shall pay to the Commonwealth one hundred and ninety-three dollars and fourteen cents ($193.14) to be used as consumer restitution; and c. On April 30, 1998, and on the last day of each month for five months following that date, the Respondent shall pay to the Commonwealth five hundred dollars ($500.00). IX. In the event that the Respondent fails to make anyone payment within thirty (30) days after the due date of the payment, or if the Respondent is late by five (5) or more days in making any two payments, regardless of whether they are consecutive or non- consecutive, the Commonwealth, at its sole option, may accelerate the debt and declare the entire unpaid balance immediately due and owing. Upon written demand, the Respondent immediately shall make full payment of the accelerated amount. Failure to so pay the accelerated amount shall be deemed a violation of this Assurance and shall subject the Respondent to all of the sanctions and penalties provided for by this Assurance and otherwise by law. X. The Respondent stipulates that, in the event he files for protection under the ( I. ( I I United States Bankruptcy Code, the debts incurred herein shall be considered nondischargeable pursuant to 15 U.S.C. ~ 523(a)(2) and (7). -7- .' . XI. Allmonics owcd by thc Rcspondcnt undcr this Assurancc shall bc paid by ccrtificd chcck, cashicr's chcck or moncy ordcr, madc payablc to thc Commonwcalth of Pcnnsylvania, and dclivcrcd to thc Burcau of Consumcr Protcction. 132 Klinc Plaza, Harrisburg, PA 17104, XII. This Court shall maintain jurisdiction ovcr thc subjcct mallcr of this Assurancc of Voluntary Compliancc and ovcr Rcspondcnt Bcllido for thc purpose of enforcing this Assurancc. XIII. Providcd that nothing containcd hcrein shall be construed to waivc any individual right of action by a consumer or a local, state, federal, or other governmental cntity. NOW THEREFORE, the Commonwealth and Respondent Bellido hercby stipulate that this Assurance of Voluntary Compliance shall have the same force and effect as a permanent injunction issued under ~ 201-4 of the Consumer Protection Law, so that any violation of this Assurance of Voluntary Compliance shall be sufficient cause for the Allorney General of this Commonwealth to seek penalties as provided in ~~ 201-8, 201-9 and 201-9.1 of the Consumcr Protection Law and any other equitable relief which the Court deems necessary or proper. -8- '~ . , . , \ II' '. i ! Ii I "~'I .i ""', ,.. " " '8, .n ~ .,' " ,\- " ".~.':.'._~~. ::0 ,,' ;.-> ~ \L.:~ >t\~(;;- ~, '- =.tl::n '# ~\ m(,l ;1- L::n .- ~~~ ~ l~~jS; I -.J ~::JC: 0 -...... ~1 -1=- GO .." ~ /0 r U1 1;; _) :r. r-):n 1~ ~:~ ,-.(") ~ . ~~ 15'" \:l.. en .", ?: :n ~ 0 ~ I:> ~ ~ J) "R.. ~ :8 -f:.. 0 j -- ..0 '-i3 'R '--' M"", COMMONWEALTH OF PENNSYLVANIA, : D, MICHAEL FISHER, ATTY. GEN.,: PLAINTIFFS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA v, CIVIL ACTION - LAW RAFAEL BELLIDO, SEBEC'S AUTO SALES, DEFENDANTS 9B-66 CIVIL TERM ORDER OF COURT AND NOW, this 30th day of October, 2001, in the case of Commonwealth of Pennsylvania versus Bellido at No. 9B-66 Civil Term, and it appearing that docket activity has recently occurred in the case, the case is stricken from the purge list and shall remain active. By the Court, Mark S. Stewart, Esquire .~ \ 132 King Plz. Ltrnllo ~ Harrisburg, PA 17104 '---1 For the Plaintiffs Thomas Gould, Esquire 1J-:2.I..'(j} RXS 2 E. Main St. Shiremanstown, PA 17011 For the Defendants pcb J. () C;l ~ C> "1:,1 !11~ ::>:: " n-, C;.; ;:''J -, ~(. ;?~J., ~..-=: . Ii:;; cr... ;, - ~::,r--n ;s> ~ C-, ..~C,. < t' '::CJ <l- -".. :r'-;, ~"'O :,:.: { j::J 5.'(':" ~} :,. (') ~ Urn < ::! ::;. ,b! .r.- '-0 -.;; ''1)C, /