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FTC Approves Final Consent in Deceptive Auto Add-On Case

Agency: Federal Trade Commission
Date: 15 May 2015
Company Will Issue $1.5 Million in Consumer Refunds, Waive $949,000 More in Fees

Following a public comment period, the Federal Trade Commission approved a final consent order with a company that deceptively advertised its add-on biweekly auto payment plan. National Payment Network, Inc. (NPN) is required to issue $1.5 million in consumer refunds within 30 days of service of the order, and will waive another $949,000 in fees to current customers.

NPN customers who participated in the biweekly payment program for 48 months or more are eligible for refunds of cancellation fees. The company is required to provide these and other refunds and the fee waivers under the terms of the order without any need for consumers to apply. Consumers with questions during the refund period can contact NPN.

As part of the settlement order, NPN is also prohibited from making deceptive claims about its payment program or other add-on products or services.

The case was part of Operation Ruse Control, a nationwide and cross-border multi-partner law enforcement sweep announced in March 2015 that cracked down on deception and fraud in auto sales, leasing, and financing.

The Commission vote approving the final order was 5-0.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow @FTC on Twitter, and subscribe to press releases for the latest FTC news and resources.



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