Dealerships in Illinois forced to pay $20 million settlement for defrauding customers

PEORIA, Ill. (WMBD) -- People who bought cars at certain dealerships in Bloomington and Peoria may be eligible for a settlement payment.

A news release on the office of the Attorney General's website stated how Leader Automotive Group and their parent company AutoCanada have to pay $20 million for defrauding consumers throughout Illinois.

The settlement comes after Illinois Attorney General Kwame Raoul and the Federal Trade Commission ordered Leader Automotive Group to pay $20 million in a settlement after defrauding customers buying cars, which will be paid out to the affected buyers, said the release.

The lawsuit also accused Leader of deceiving customers on the price and availability of cars, tacking on "junk fees," charging customers with expensive add-ons, posting fake reviews, and not telling consumers that the cars they were buying were imported from Canada along with many other unlawful conducts, the release said.

“This dealership network engaged in bait-and-switch tactics by luring consumers into their dealerships with lower prices only to either require consumers to purchase allegedly pre-installed add-on products or charge consumers for those products without their knowledge or permission,” said Raoul.

The release also said the settlement also requires all Leader dealerships in Illinois to clearly state the car's offering price, which is the actual price anyone can pay to buy it. They must also obtain buyers' consent for add-on charges.

According to the release, the following dealerships are the ones affected in Peoria and Bloomington: 

• Bloomington Normal Auto Mall, which includes Mercedes-Benz of Bloomington, Lincoln of Normal, Volkswagen of Bloomington Normal, Volvo Cars Normal, Subaru of Bloomington Normal, and Audi Bloomington Normal
• Autohaus Motors, which includes Mercedes-Benz of Peoria, Porsche Peoria, Volkswagen of Peoria, and Audi Peoria.