Skip to comments.Cullman (AL) Car Dealer Indicted for Violating Legal Protections for Active Duty Service Members
Posted on 03/31/2013 5:24:36 PM PDT by Larry381
BIRMINGHAMA federal grand jury Wednesday indicted a Cullman used car dealer for violating federal protections for active duty military service members by refusing to reduce the loan interest rate and repossessing the vehicle he sold to a man who was later deployed overseas with the Alabama National Guard, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
A two-count indictment filed in U.S. District Court charges Carl Ralph Nuss, 75, with violating the Servicemembers Civil Relief Act. The act restricts or limits civil actions in the areas of financial management, including rental agreements, security deposits, evictions, installment contracts, credit card interest rates, mortgages, civil judicial proceedings, and income tax payments, against service members called to active duty.
Nuss, owner of North Alabama Wholesale Autos in Cullman, sold a 2002 Ford Sport-Trac in February 2011 to the 22-year-old man. The dealership sold the vehicle for $9,746 and, after a $2,200 down payment, financed the balance at 25 percent interest per year, according to the indictment.
In May 2012, the guardsman, a private first class, was called to active duty in Afghanistan. In July 2012, according to the indictment, Nuss received a letter from the guardsman requesting that the dealership reduce the interest rate on his car loan from 25 percent to 6 percent, as required by the act. Nuss never reduced the interest rate and, two days after receiving the letter, hired two men to repossess the guardsmans truck. The two men repossessed the vehicle without a court order, in violation of the Servicemembers Civil Relief Act, the indictment says.
The maximum penalty for each count is one year in prison and a $100,000 fine.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent of the charges, and it will be the governments burden to prove a defendants guilt beyond a reasonable doubt at trial.
While this scumbag deserves to fry (although he’ll probably only get probation and a fine) I’m wondering why this PFC signed a contract for an 11-year old car well over Blue Book value at 25 percent. No accounting for brains when people gotta have what they want right then and there I guess.
Re-possessed after two days?
He’ll cop a senility plea.
Was the guys credit trashed or was the car dealer a real sleaze?
This is an example of why high schools need to teach home economics and consumer math to every student.
Once upon a time, this was expected.
>>>Was the guys credit trashed or was the car dealer a real sleaze? >>>
If the guy’s credit was trashed,then the dealer had no business selling him the car with a 25% charge since the buyer would never be able to pay it.
I sure hope this appears in some paper in the dealer’s area.
“This is an example of why high schools need to teach home economics and consumer math to every student.”
I’ve been saying that for years. Some graduates don’t even know how to write a check.
I’m still scratchin my head @ $9,746 for a 2002 sport-trac...
Ripping off young service members is a long tradition in the used car industry.
IMHO, this guy should be tarred and feathered for selling a 10 year old truck for nearly $10k with a 25 percent interest rate.
Was reported in local papers. Lots of difference and more info than reported here.
Oh c'mon. These places LIVE to sell cars to 20yo PFCs at 25% interest. And Obama voters.
This was probably one of those infamous “Buy here pay here” places.
It is true that many of these companies, big and small, prey on the underclass/young who have nowhere else to go. You see this everywhere: for example, I recently got a deal for one year no interest on some furniture. Of course, if you don’t pay it off in a year, they charge you interest in the whole thing, which is a whopping 29.99%! I had the money but I will use OPM if it is free. But failure is very expensive.
“Im wondering why this PFC signed a contract for an 11-year old car well over Blue Book value at 25 percent.”
Because sometimes people are PFC for a reason.