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.