CONSUMER ALERT

MIKE COX

ATTORNEY GENERAL

The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.

BE SURE TO READ PURCHASE CONTRACTS; BEWARE OF “PACKING”

“PACKING” VEHICLE PURCHASE CONTRACTS

Many Michigan consumers will pay more for their next car than they paid for their first home. Every document the consumer signs must be read with great care. This consumer alert was prepared to alert purchasers that a few unscrupulous vehicle dealers may try to "pack" the purchase contract.

Packing occurs when a dealer:

(1) Negotiates the terms of a consumer contract with a consumer and presents to the consumer for signature a consumer contract that includes charges for any goods or services, including insurance, service contracts, organizational memberships, or future purchase discount services, the consumer did not agree to purchase.

(2) Inflates the amount of a monthly payment or down payment or extends the maturity of the consumer contract disguising the actual cost of goods or services, including insurance that the dealer proposes to add to the consumer contract.

If a consumer is harmed by "packing," the Attorney General will try to help the victim.  A dealer accused of "packing" will likely argue the signature of the consumer on the contract is all the proof that is needed to establish that the consumer agreed to the terms of the contract. So, be sure to carefully read a contract before you sign it.

Consumers may contact the Attorney General's Consumer Protection Division at:

        Consumer Protection Division
        P.O. Box 30213
        Lansing, MI 48909

        517-373-1140
        Fax: 517-241-3771

        Toll Free: 877-765-8388

        www.michigan.gov/ag

Consumers interested in receiving electronic mail notification of Attorney General Consumer Alerts can sign up on the Attorney General’s home page (www.michigan.gov/ag) under “Desktop Direct.”  You may also sign up to receive notice of press releases and formal opinions.  Examples of consumer alerts issued in the past several months include:  Fraudulent E-mail—Thieves Intend to Steal Your Personal Information; Identity Theft Information for Michigan Consumers; Nigerian and counterfeit Cashier’s Check Scams.