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Tom Hudson

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Articlesby Tom HudsonNovember 17, 2009

MMWA Etch Claim Fails, but State Claim Sticks

Thomas B. Hudson - “Throw enough of it against the wall, and something will stick,” says the adage, and plaintiffs’ lawyers heed that advice. In a recent case, the lawyer claimed that the dealer violated the Magnuson Moss Warranty Act’s (MMWA) anti-tying provisions, and also claimed that the MMWA violation constituted a separate violation of a state “unfair and deceptive acts and practices” or “UDAP” law.

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Articlesby Tom HudsonSeptember 30, 2009

Stolen Any Good Forms Lately?

Thomas B. Hudson - “No. Why should we pay ABC Forms Company 58 cents a form for those things? My brother-in-law says he knows a printer who’ll run them off for us for 12 cents each. Give me a copy of one of the ones you have left, and I’ll get us a bunch made.”

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Articlesby Tom HudsonAugust 24, 2009

Ka-Boom

Thomas B. Hudson - I was conducting an on-site dealership compliance audit of a buy here pay here store, looking over the dealership’s sales and F&I process from A to Z in an effort to decrease the dealership’s potential liability for violations of state and federal law. It’s a good thing that it was only lil’ ole me probing this dealership’s operation. If, instead, an FTC SWAT team had descended on the car lot, the dealer would be out of business ...

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Articlesby Tom HudsonAugust 3, 2009

AGs Don't Even Have to Open the Envelope

Thomas B. Hudson - A friend who is a consultant to auto dealers regularly supplies me with examples of direct mail advertisements from his dealer clients. Almost always, the ads he forwards to me are ...

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Articlesby Tom HudsonJuly 7, 2009

Warning Bells: The Internet, Pricing and Discounting

Thomas B. Hudson - "Dolly" saw a 2006 Nissan Murano advertised on the Internet. When she contacted the dealer about the car, a dealer representative quoted the purchase price as $15,500. When Dolly drove to the dealership to pick up the car, a second representative told her the purchase price was actually $21,500. “Molly,” Dolly's sister, agreed to act as a co-signer so that Dolly ...

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Articlesby Tom HudsonJune 19, 2009

The Bank Defrauded, So I get a Free Car

Thomas B. Hudson - The bailout mentality seems to be everywhere. Here’s an example. Customers borrow money from a bank to finance their car purchases. They default on their loans, and the bank undertakes court actions to recover the vehicles. The consumers discover that the loan officer they dealt with had pled guilty to defrauding the bank. The consumers decided that was reason enough to let them keep their cars ...

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Articlesby Tom HudsonJune 9, 2009

How Employee F&I Fraud Can Come Home to Roost

Thomas B. Hudson - So, your dealership’s employee dummies-up a credit application with bogus income information in order to get the bank to buy the deal, enabling the employee to earn his commission. No one else at the dealership is aware of the fraud. Then, the employee’s acts are discovered ...

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Articlesby Tom HudsonApril 2, 2009

Good Lawyering Pays Off in Defense of GAP

Thomas B. Hudson, Esq. - Lawyers who make their livings suing car dealers have latched onto yet another way to get their hands into dealers’ wallets. A slew of class action lawsuits around the country allege claims against dealers when...

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Articlesby Tom HudsonMarch 16, 2009

Class Certification Motion Defeated in "Unauthorized Practice of Law" Case

Thomas B. Hudson, Esq. - In several jurisdictions around the country, dealers have been hit with class action lawsuits alleging that the dealers’ actions in completing legal forms such as buyer’s orders and retail installment contracts constitute...

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Articlesby Tom HudsonFebruary 23, 2009

Why You Shouldn't Delay Your Red Flags Program

Thomas B. Hudson, Esq. - We are urging dealers to move with urgency to get their Red Flags programs in place quickly—long before the end of this 6-month enforcement grace period granted by the FTC. Why? Three reasons, and they may apply to...

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