DES MOINES, Iowa — Iowa attorney general Tom Miller recently announced one of the
state's independent dealers has agreed to stop what was alleged to be
illegal repossessions of vehicles.

In an agreement with the
consumer protection division, called an assurance of discontinuance,
Miller alleged that Goldy's Auto of Ottumwa, Iowa, illegally attempted
to have customers waive their rights surrounding repossessions.

Under Iowa law, Miller said a consumer cannot agree to give up those rights or any rights under the Iowa Consumer Credit Code.

Often
called a "right to cure" or cure of default, the law requires that
creditors inform consumers the first time they default on a credit
transaction in a one-year period. Creditors must also provide consumers a
notice informing them of their rights, including the right to correct
the alleged default. The notice must describe the default, the steps the
consumer must take to resolve it, and the creditor must allow consumers
20 days to correct the default before repossessing a vehicle.

In
addition to convincing customers to waive their rights, Miller alleged
that Goldy's failed to provide consumers with proper right to cure
notices.

"Repossessing vehicles without providing a proper notice
of right to cure is a serious violation," Miller said according to the
agreement.  "All repossessions made without providing a proper notice of
right to cure are illegal repossessions."

Under the agreement,
the dealership and owner Greg Goldizen have agreed that in cases during
the past two years where the store repossessed a vehicle without
providing proper right to cure notices, the operation will forgive any
outstanding balance and will refund amounts consumers paid the dealer
after it repossessed a vehicle.

Miller also alleged that Goldy's
failed to file a required consumer creditor notification with the state.
The attorney general added Goldy's has since filed that notification
and paid all required fees, including late fees.