Some customers of closed Ga. auto dealership are being told accounts are delinquent. They’re not.

(ATLANTA, Ga) — Customers of a car dealership with locations across metro Atlanta are dealing with problems months after it suddenly closed its doors.

Channel 2 Consumer Investigator Justin Gray learned that U.S. Auto Sales financed many of the cars in-house, as well as providing extended warranties and gap insurance.

The business’s customers are now dealing with a big mess.

Ricky Osborne said he never missed a payment, but he recently got a letter warning him about his delinquent account for the car he purchased from U.S. Auto Sales.

“Never missed a payment. Never been late on one,” Osborne said. “(The letter) said everyone should have a second chance and if I would catch up on my late past due payments, everything would be ok. Never been late with them. I’ve got receipts showing everything.”

Osborne is one of many customers who bought cars at the dealership and is now dealing with the aftermath of all 39 locations closing.

A company called Westlake Portfolio Management is now handling all the former customers’ loans.

“I’ve gotten 46 phone calls since April 23,” Osborne said. “One day, I sat on the phone for two hours on hold, three hours on hold, four hours on hold. It took me three weeks to get through and talk to somebody.”

Attorney Michael T. Flinn said he’s heard from former U.S. Auto Sales customers who never received tags and titles and others whose extended warranties now won’t pay out.

“I’m telling those customers where U.S. Auto Sales violated the agreement, they don’t have to pay,” Flinn said. “Westlake can’t make them pay.”

Westlake said in a statement:

“We are committed to making this transition as seamless as possible for all customers of U.S. Auto Sales.”

Osborne is still trying to get answers n why his account would be delinquent and what happens to his extended warranty and gap insurance.

“It don’t even exist anymore. I can’t even use it. I paid $4,000 for an extended warranty for three years, 38,000 miles,” Osborne said. “We’ve only put about 18,000 miles on the car.”

Gray was able to connect Osborne with the director of compliance at Westlake, who told him that regardless of what the letters he has received said, his account is not delinquent.

He also said a third-party warranty company will take over some of the U.S. Auto Sales extended warranties, including Osborne’s.

Flin said the contract Osborne and others signed has legal language in there, the FTC Preservation of Consumer Claims and Defenses clause, which requires by law that U.S. Auto Sales must fulfill the terms of the contract, or it’s void.

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