Arizona AG Kris Mayes Announces $2.6 Million Settlement with Coulter Motor Company

Arizona Attorney General Kris Mayes and the FTC announce a $2.6 million settlement with Coulter Motor Company for deceptive practices.Photo byImage: Tysonomo Multimedia

PHOENIX – Arizona Attorney General Kris Mayes, in collaboration with the Federal Trade Commission (FTC), announced Thursday legal action against Coulter Motor Company for deceptive practices that harmed consumers.

The company, along with its former general manager, Gregory Depaola, has agreed to pay $2.6 million to settle the lawsuit. Most of the settlement will go toward refunding consumers affected by the allegedly unlawful actions.

“Coulter’s deceptive and discriminatory practices are unacceptable,” Mayes said. “Arizonans should be able to buy a car without being misled or charged more based on their ethnicity. My office is committed to stopping such predatory behavior and protecting consumers across Arizona.”

Coulter Motor Company and Depaola are charged with violating the FTC Act, the Equal Credit Opportunity Act, and the Arizona Consumer Fraud Act. The proposed settlement requires Coulter and Depaola to pay $2.6 million, with $2.35 million designated for consumer refunds.

The complaint also highlights discriminatory practices against Latino consumers, who, on average, were charged nearly $1,200 more in interest and add-on fees compared to non-Latino white customers.

Samuel Levine, director of the FTC’s Bureau of Consumer Protection, emphasized the impact on Latino consumers, saying, “Coulter used junk fees and other illegal tactics to inflate prices, particularly for Latino customers. The FTC will continue to crack down on such practices that harm consumers and disadvantage honest businesses.”

Consumers who believe they have been victims of fraud can file a complaint through the Attorney General’s website. Complaints can also be filed with the FTC online or by calling (877) 382-4357.

Additionally, those needing a complaint form can contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or toll-free outside the metro areas at (800) 352-8431.