Business ProfileforPassport BMW

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On October 18, 2022,  Passport Automotive Group, Inc, et al (Passport) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief with the Federal Trade Commission (FTC). The order settles allegations that Passport participated in deceptive and unfair acts in violation of the FTC and the Equal Credit Opportunity Acts by adding “junk fees” on top of advertised car pricing, and charging more in financing costs and fees to Black and Latino customers.  Specifically, the FTC’s complaint alleged consumers had to pay hundreds to thousands of dollars in fees for inspections, reconditioning, preparation, and certifications above the advertised price or negotiated price, which already included these fees; thus double charging consumers.  Additionally, the complaint alleged Passport would increase the “buy rate” arbitrarily for credit applicants of Black (47%) and Latino (38%) buyers more often than non-Latino or Black customers.  The buy rate is the lowest interest rate a purchaser of loans would buy packages of loans, and increasing it effectively raises the cost of financing for these individual auto purchasers by hundreds of dollars. 

Under terms of the Stipulated Order, Passport agreed to refrain from any misrepresentation of the costs or terms of purchasing, financing, or leasing a vehicle; list whether charges are optional or required; demonstrate charges, products, or services are authorized by the consumer, and note any material fact applicable to the purchase for which a charge is incurred.  Passport is further prohibited from the use of any unlawful credit discrimination practices and must implement a fair lending program.  Lastly, Passport was ordered to pay $3,380,000 as monetary relief to consumers. Consumers who have questions about their payment should contact the refund administrator at 877-701-3692 or visit the FTC website.  The Stipulation Order was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.