Last modified July 30, 2014, at 8:54 p.m.
BANGOR, Maine — The used car dealer sued by the Maine attorney general’s office earlier this year for unfair and deceptive trade practices has agreed to the suspension of his license to own a used car business for seven years and to reimburse consumers up to $30,000 for repairs to cars purchased from Bumper2Bumper Inc. and My Maine Ride.
Glenn A. Geiser Jr., 48, of Brewer signed the consent agreement July 11 along with Assistant Attorney General Carolyn A. Silsby, whose office filed a lawsuit against the longtime used car dealer on Jan. 31 in Penobscot County Superior Court.
“There is separate litigation continuing against Bangor Car Care, Inc., which is owned by Geiser’s mother,” according to a statement issued by the Maine attorney general’s office.
The provisions of the agreement — a copy of which was obtained by the Bangor Daily News — allow Geiser to work for someone else who is licensed to sell used cars, as long as that individual is not a member of his household. It also prevents him from seeking payment for money owed his firms after the repossession of a vehicle and filing an adverse report on a consumer’s credit report concerning funds owed for a repossessed car or truck.
Geiser will not be ordered to pay any fines, according to the agreement. If he violates any of its provisions, he would be found in contempt of court and fined up to $10,000 per violation under Maine law.
The agreement will not go into effect until it is signed by a judge. Superior Court Justice Ann Murray is handling the case.
“I am greatly humbled by the experience,” Geiser said in statement issued by his attorney, Joseph Baldacci of Bangor. “I tried the best that I could, and though I made mistakes, we sold almost 19,000 cars and employed 40 people at any given time.
“We all worked very hard to help, and although we as well as I made mistakes, we tried very hard to provide affordable transportation,” he continued. “Despite the publicity, I have been contacted by many customers who have thanked the business for providing the services and choices to them.
“My family and I look forward to continuing to be productive, caring, positive, and helpful citizens in our community,” Geiser concluded. “We love the State of Maine, the school system our children attend, and the community we live in.”
Under the terms of the proposed consent judgment, Geiser and his used car dealerships, My Maine Ride and Bumper2Bumper Inc., will be out of business until 2021, Attorney General Janet Mills said in a statement issued Wednesday afternoon. Additionally, several consumers will be eligible for partial restitution for repair costs and may be eligible for forgiveness of loan balances on repossessed cars.
“The companies Mr. Geiser relied on to exploit consumers will not do business with him in the future,” she said. “This should stand as a warning to any business that thinks it can cut corners and abuse Maine consumers.”
The companies that provided financing for Geiser’s customers, Persian Acceptance Corp., Westlake Services, LLC, Mid-Atlantic Finance Co., Source One Financial Corp., Consumer Portfolio Services Inc., United Auto Credit Corp. and Credit Acceptance Corp., have cooperated with her office, Mills said.
“We appreciate the willingness of these companies to provide relief to consumers who are stuck with loan payments for cars that were essentially worthless,” she said.
The finance companies have agreed to stop collection actions for consumers whose vehicles were repossessed and to remove all negative information relating to these loans from consumers’ credit reports, according to Mills. In addition, all have agreed that they will not provide financing for any future business owned or operated by Geiser.
The date by which consumers must file claims that is stated in the agreement is expected to be changed from Nov. 15 to a date later in the year, Baldacci said.
In a separate court action, Geiser paid a $7,000 fine in February after pleading no contest to 28 of 83 counts of using fake inspection stickers. At that time, Geiser also owed $9,000 in unpaid fines to the Occupational Safety & Health Administration for workplace safety violations in 2012 and 2013. Information about whether Geiser has paid the OSHA fines was not available Wednesday afternoon.
The lawsuit filed by the attorney general’s office alleged that Geiser and his dealerships targeted consumers with poor credit who needed financing, pressured them to buy cars that were not roadworthy and did not respond to customer complaints, according to a previously published report.
The Consumer Protection Division of the AG’s office received 86 complaints in the previous 13 months about My Maine Ride, 159 complaints about Bumper2Bumper since 2011, and 539 complaints about Bangor Car Care since 2003, the complaint said.
The state initially sought civil penalties, which could have run as high as $10,000 for each violation; a permanent injunction to bar Geiser and any entity in which he has an ownership interest from promoting, selling and/or financing used cars; and reimbursement for the cost of the litigation, including attorney and expert witness fees.
The agreements with the finance companies are available online at http://www.maine.gov/ag/news/cases_of_interest.shtml, Mills said Wednesday. Consumers who purchased a vehicle from a Geiser dealership and have a loan with any of the seven finance companies can call 800-436-2131 or email firstname.lastname@example.org to obtain information on how the settlements may affect them.