Wichita car dealer fined $15,000 fine after Craigslist sale
A Wichita car dealer was fined more than $15,000 for violating the Consumer Protection Act on Tuesday after failing to provide a title within 60 days of a sale and using an unlicensed salesperson, Sedgwick County District Court documents show.
An investigation by the District Attorney’s Office found Mohammad Lahowk, owner of H and R Auto Sales, 1333 S. Seneca and 221 E. 13th North, has been advertising vehicles on Craigslist without saying they’re being sold by a dealership, which is against the law in Kansas.
Car dealerships are held to stricter legal standards and regulations, through the Consumer Protection Act, when selling cars than a private individual making a sale. By posing as private-party sellers, dealers can evade responsibilities to their customers, such as warranties.
Lahowk also has used an unlicensed salesperson to sell cars, which is also against the law in Kansas, the investigation found.
A Consent Judgment and Permanent Injunction filed Tuesday in district court says Lahowk was investigated after he sold a car to a Haysville woman. Lahowk agreed with the findings of the investigation and to follow the terms of the agreement, which include paying court costs, investigation fees and a civil penalty.
By entering the agreement, Lahowk agreed to stop posting advertisements on Craigslist without clearly stating that the sale comes from a dealership.
The Haysville woman saw one of Lahowk’s Craigslist postings for a 2005 Hyundai Tucson in early July. She bought the car from Lahowk for $2,633.75, paying $2,000 in cash up front. A week later, she paid another $195 on the car. She still owes $455, court documents show.
Lahowk didn’t tell the woman she was buying from a dealer and he didn’t provide a title for the car within 60 days, as required by Kansas Law. The judgment calls that “an unconscionable act and practice.”
The investigation into H and R Auto Sales found Lahowk was using an unlicensed sales person on other sales, which it calls “a deceptive act and practice” in the consent judgment.
The investigation found Lahowk’s business is licensed by the Kansas Department of Revenue, but is not registered with the Kansas Secretary of State.
For 12 months, Lahowk will pay $250 on the first day of each month until the end of 2019. At that time, $12,000 of the civil penalty will be reconsidered.
Lahowk could end up paying as much as $15,417.70 for a $2,600 car. Additional fines can be added if he fails to make timely payments or violates the terms of the agreement.
The Sedgwick County District Attorney’s Office encourages the members of the public to report suspected violations of the Consumer Protection Act through a form on its website at www.sedgwickcounty.org.