Guzman

FACTS

On December 19, 2012, Jose Guzman filed a complaint, alleging fraud and the violation of various consumer protection laws in connection with his purchase of a 2005 Volkswagen Toureg from 605 Auto. Guzman alleged he saw the car advertised as a certified pre-owned car for $14,995 with 12.99 percent APR financing. When Guzman and his wife went to see the car, they were informed they did not qualify for the advertised price and finance rate due to their poor credit. They negotiated a sales price of $15,995 with an APR of 23.99 percent and a $3,000 down payment. The Guzmans signed a retail installment sales contract, which contained an arbitration clause. Soon after their purchase, the Guzmans began to experience difficulty with the car. The middle rear seatbelt was not functional and various warning lights became illuminated. Guzman’s wife experienced trouble with the brakes and sudden acceleration while driving on the freeway. On a separate occasion, she crashed into a neighbor’s gate when the brakes failed. Guzman further alleged the car did not comply with California’s smog and safety pre-sale requirements. Guzman attempted to have the car repaired multiple times under the…