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State wins $88K judgment against Indianapolis car dealer accused of “deceptive” practices

Posted: 6:00 AM, Apr 02, 2019
Updated: 2019-04-03 08:05:53-04
Glover Auto Sales.jpg

INDIANAPOLIS — The Indiana Attorney General’s Office has won an $88,583.65 judgment against an Indianapolis car dealer they say was deceptive and kept his customers from being able to legally drive their cars on the road.

The lawsuit, filed on June 7, accused Glover Auto Sales and its president Kenneth Glover of violating Indiana’s Deceptive Consumer Sales Act, Title Delivery Act, and the Motor Vehicle Unfair Practices Act.

The state’s Deceptive Consumer Sales Act prevents businesses from committing unfair, abusive, and deceptive acts in transactions with consumers.

The suit also accused Glover of keeping sale proceeds for himself that should have been returned to consumers, and failing to deliver titles to at least nine consumers.

Teresa LaRose, of Indianapolis, stopped at Glover Auto Sales on Pendleton Pike in 2017 when she was helping her friend look for a car.

“Her credit wasn’t good enough, so he talked me into signing the papers for her,” LaRose said.

They bought a 2013 Hyundai Elantra on April 26, 2017, records show. But they couldn’t legally drive the car.

“We never got a title, she could never get a title,” LaRose said.

LaRose and her friend returned the car to Glover Auto Sales, 7956 Pendleton Pike, and LaRose filed a complaint with the Indiana Attorney General’s Office.

“I figured it was time to let somebody know something,” LaRose said. “There wasn’t anything I could do. We couldn’t get it on the road.”

In its lawsuit against Glover Auto Sales, the Attorney General’s office said Glover failed to deliver titles to Teresa LaRose and eight other consumers.

The judgment, handed down on Feb. 28, ordered $10,755.65 in restitution to be paid to LaRose, as well as $22,828 in restitution to two other consumers.

LaRose was unaware of the judgment until Call 6 Investigates told her.

“That would be nice, I’ll take it,” LaRose said. “I wasn’t aware. I wasn’t sure if my complaint would go anywhere.”

The Marion County Superior Court also issued $55,000 in civil penalties against Kenneth Glover for unfair and deceptive acts involving consumers.

The court ordered the Indiana Bureau of Motor Vehicles to issue titles to three consumers still waiting to legally drive their vehicles.

The judgment also issued an injunction, preventing Glover from engaging in any unfair, abusive or deceptive transactions with consumers.

The state requires the dealership to deliver the title to the consumer within 31 days of the sale/delivery of the vehicle, even if the vehicle is financed.

Betsy DeNardi, director of consumer protection at the Indiana Attorney General’s office, said it’s a hassle for consumers if they don’t have their title.

“If you don’t have that title, you can’t legally drive that vehicle because you can’t legally get a license plate for that vehicle,” DeNardi said. “Most people need their vehicle to go to work, to school, and all the places that you need to go. You’re spending thousands of dollars on a vehicle because you need it.”

The Indiana Secretary of State’s office says even if a vehicle is financed, the title will be issued in the consumer’s name.

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The Attorney General’s office is hopeful it can recoup some money for customers of Glover Auto Sales.

“Every auto dealer is supposed to have a bond in place so they can get licensed, so we can access that bond and get money because Mr. Glover was operating as a licensed auto dealer,” DeNardi said. “It is our hope that we are able to get that money back for them.”

Glover Auto Sales closed its doors, and another dealer is now in its Pendleton Pike location.

Call 6 Investigates emailed Glover and stopped by his house.

He declined to be interviewed on camera, but told us the Department of Revenue audited him which impacted his accounts.

“It’s just things I’m embarrassed of,” Glover said. “When I got audited they levied my accounts, and a lot of people got screwed up. It’s not something I’m going to run from, and I’m going to pay everything I owe.”

Glover said he had been doing business for 25 years.

“I figured I would just shut down instead of making a mess, and I started taking care of one thing at a time,” Glover said.

Glover said he plans to reach out to customers who are still waiting for their titles.

“It’s true, they didn’t get their titles,” Glover said. “I’m in the process of getting everyone their titles now. I’m sorry, everybody is going to be taken care of.”

Glover denied he was deceptive in his business dealings.

“There’s always a different side of the story,” Glover said. “I was wrong, it was wrong, but it was out of my control.”

The Department of Revenue can’t comment on taxpayer information.

However, Glover Auto Sales is listed on the agency’s website as a business whose registered retail merchant certificate expired due to nonpayment of delinquent sales tax.

The Indiana Attorney General’s office says complaints against car dealerships rank No. 2, second only to unwanted scam calls.

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They review complaints and look for patterns, even if it involves a business that has shut its doors.

“Even if a business has closed, you should still file a complaint with our office,” DeNardi said. “We need consumers to provide information to us, so we know how to assist them.”

Before you visit a car dealership, make sure the dealer is licensed with the Indiana Secretary of State, and check to see if the state’s taken action against them .

And of course, do your research including reading what you’re signing and consider taking the car to a mechanic.

“You definitely need to get any promises in writing that the dealership or the salesman is making,” DeNardi said. “Talk to people you know about good or bad experiences they’ve had with dealerships.”

Teresa LaRose is happy she filed a complaint with the Indiana Attorney General’s office and hopes others will do the same.

“I think they need to report it, just like I did,” LaRose said.

You can also file a complaint with the following agencies: