Bank Sues Car Dealership

Friday, July 22nd, 2011

The Bill Smith Buick-GMC car dealership in Cullman, Alabama is being sued over “numerous misrepresentations,” by a Birmingham bank. The bank is alleging the dealership misrepresented themselves in several retail installment contracts made for car sales.

BBVA Compass bank has filed suit in Jefferson County Circuit Court stating breach of contract against the Cullman business. The suit alleges false representations were purposefully made in contracts, with the intent that Compass would rely on them and approve loans.

Allegations include providing false information on credit reports including false income for buyers, and situations where the dealership may have covered some or all of the cash for down payments. The suit also alleges “straw purchases” were completed, with cars purchased by someone with a favorable credit history on behalf of someone with poor credit history.

The Bill-Smith dealership has been in business for over 60 years in Cullman.

Attorney Zeb Little, who is representing the dealership, said the allegations made in the case will be contested. Little adds, “We certainly plan to fight this case, and think the claims do not have merit and the lawsuit is inappropriate. We’re surprised that this case has been filed, because they have a long standing relationship with Compass Bank. They offer a great product, and have been a part of this community for a long time.”

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