Business ProfileforPassport Nissan of Marlow Heights
New Car Dealers
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Government Action: BBB reports on known government actions involving business’ marketplace conduct::
Federal Trade Commission v. Passport Motorcars, Inc, et al
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On October 18, 2022, Passport Automotive Group, Inc, et al (Passport) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief with the Federal Trade Commission (FTC). The order settles allegations that Passport participated in deceptive and unfair acts in violation of the FTC and the Equal Credit Opportunity Acts by adding “junk fees” on top of advertised car pricing, and charging more in financing costs and fees to Black and Latino customers. Specifically, the FTC’s complaint alleged consumers had to pay hundreds to thousands of dollars in fees for inspections, reconditioning, preparation, and certifications above the advertised price or negotiated price, which already included these fees; thus double charging consumers. Additionally, the complaint alleged Passport would increase the “buy rate” arbitrarily for credit applicants of Black (47%) and Latino (38%) buyers more often than non-Latino or Black customers. The buy rate is the lowest interest rate a purchaser of loans would buy packages of loans, and increasing it effectively raises the cost of financing for these individual auto purchasers by hundreds of dollars.
Under terms of the Stipulated Order, Passport agreed to refrain from any misrepresentation of the costs or terms of purchasing, financing, or leasing a vehicle; list whether charges are optional or required; demonstrate charges, products, or services are authorized by the consumer, and note any material fact applicable to the purchase for which a charge is incurred. Passport is further prohibited from the use of any unlawful credit discrimination practices and must implement a fair lending program. Lastly, Passport was ordered to pay $3,380,000 as monetary relief to consumers. Consumers who have questions about their payment should contact the refund administrator at 877-701-3692 or visit the FTC website. The Stipulation Order was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On October 18, 2022, Passport Automotive Group, Inc, et al (Passport) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief with the Federal Trade Commission (FTC). The order settles allegations that Passport participated in deceptive and unfair acts in violation of the FTC and the Equal Credit Opportunity Acts by adding “junk fees” on top of advertised car pricing, and charging more in financing costs and fees to Black and Latino customers. Specifically, the FTC’s complaint alleged consumers had to pay hundreds to thousands of dollars in fees for inspections, reconditioning, preparation, and certifications above the advertised price or negotiated price, which already included these fees; thus double charging consumers. Additionally, the complaint alleged Passport would increase the “buy rate” arbitrarily for credit applicants of Black (47%) and Latino (38%) buyers more often than non-Latino or Black customers. The buy rate is the lowest interest rate a purchaser of loans would buy packages of loans, and increasing it effectively raises the cost of financing for these individual auto purchasers by hundreds of dollars.
Under terms of the Stipulated Order, Passport agreed to refrain from any misrepresentation of the costs or terms of purchasing, financing, or leasing a vehicle; list whether charges are optional or required; demonstrate charges, products, or services are authorized by the consumer, and note any material fact applicable to the purchase for which a charge is incurred. Passport is further prohibited from the use of any unlawful credit discrimination practices and must implement a fair lending program. Lastly, Passport was ordered to pay $3,380,000 as monetary relief to consumers. Consumers who have questions about their payment should contact the refund administrator at 877-701-3692 or visit the FTC website. The Stipulation Order was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.
At-a-glance
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Business Details
- Location of This Business
- 5000 Auth Way, Marlow Heights, MD 20746-4205
- BBB File Opened:
- 12/19/1991
- Years in Business:
- 32
- Business Started:
- 12/19/1991
- Business Incorporated:
- 6/1/1997
- Type of Entity:
- Corporation
- Alternate Business Name
- Passport Automotive Group Inc
- Passport Motorcars Inc
- Related Businesses
- Business Management
- Mr. Everett A. Hellmuth III, President/Founder
- Mr. Jay A. Klein, Vice president
- Contact Information
Principal
- Mr. Everett A. Hellmuth III, President/Founder
- Mr. Jay A. Klein, Vice president
- Additional Contact Information
Email Addresses
- Customer Service
Customer Complaints
10 Customer Complaints
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File a ComplaintMost Recent Customer Complaint
03/10/2023
- Complaint Type:
- Service or Repair Issues
- Status:
- Answered
My car was towed to Nissan on 2/8/2023 after the alternator was replaced on 1/19/2023 for $1,133.77, since then my car has been towed to Nissan three additional times with no clear explanation as to what is wrong with my vehicle after consistently breaking down. The alternator was replaced a second time on 2/15/2023, it was then towed to another repair shop on 2/25/2023 in which they stated it was the alternator (receipt date 2/28/2023, amount $50). My car was then towed to Nissan from this repair shop, I have been without transportation for more than a month and Nissan has failed to properly diagnose my car or supply a refund so I can take my car to another repair shop outside of Nissan to get fixed.Every time my car is towed to Nissan it sits for more than a week, the last tow date was 3/3/2023 and it's currently still sitting at Nissan. On 2/28/2023 I was given a loaner vehicle for two days but was told they could not continue to supply the loaner vehicle while testing and trying to figure out the problem.
Read MoreCustomer Reviews
3 Customer Reviews
What do you think? Share your review.
Most Recent Customer Review
Luke L.
1 star10/31/2022
Do NOT have your car serviced here - their service department runs a scam and takes advantage of ethnic minorities by charging exorbitant pricing and offering terrible service. See the quote provided by them to fix a leak - they did charge me $160 to inspect the cause of the leak, and then quoted me a price of $3,137.00 to fix the issue. The issue was a clogged hose - which they found, and could have simply unclogged, but they chose not to unclog this but to provide this ridiculous quote to try to scam me. When I asked how much to just replace the hose, the quote was $800. Needless to say, I took my car to another mechanic, who fixed the clogged hose and replaced the air filter, (did not even need to buy a new hose - just unclog it!) all for $36. That this Nissan quoted me $3100 above what it actually cost to fix the issue is proof that they are a scam. Do Not Visit For Car Service.
Passport Nissan of Marlow Heights Response
11/07/2022
Luke,
Our focus is making sure our clients are informed and leave our store feeling that we have taken care of all their needs. You did not experience this, and I would like to apologize. There was a misunderstanding of what we were recommending for your car to guarantee no more water leaks and stop the mildew and mold that could grow in your car as a result of water leaking in.
We hope we took the time to explain why the cost was so high, but it seems our advisor / representative did not do a good job on this, and we apologize. When dealing with water leaks, there is a possibility of future damage to your car, but more importantly to your health by mold development. We do our best to give all our clients a complete picture of what the car needs. I do understand that you thought you got a cheaper repair at a gas station, but that repair did not address all your wet interior parts including the carpeting. We could have also handled a clearing of the drain, and again my apologies if that was not offered to you, however; our goal was to inform you of the extent of damage to your car, and possible health consequences. The only way to make sure that did not happen was to repair all damaged and wet interior.
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