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Dealership group sued by ex-employees over claims of credit fraud

Kunes Auto Group is set to defend itself in an Illinois court from allegations of fraud and misconduct following an employee-led lawsuit.

Kunes Auto Group is set to defend itself in an Illinois court from allegations of
fraud and misconduct, after two ex-staff members sued the dealership.

According to the suit, three of the group’s storefronts in the state allegedly
participated in deceitful tactics, misleading lenders and consumers alike to push
sales. Two former employees claim to have witnessed fraudulent activity such as
“power-booking,” a common form of credit application fraud in the retail
automotive sector. The scheme works by adding falsely adding features and
options to a customer’s loan request, in the hopes that a lender will approve a
greater amount than the vehicle is actually worth. This and other instances of
fraud were supposedly either endorsed or allowed by dealership executives and
managers alike. In addition to these accusations, the employees claimed to have
been punished for refusing to defraud lenders.

Kunes Auto Group, and the other defendants listed in the suit, denied any
wrongdoing, and promised to prove their innocence in court. The dealership owns
42 stores mainly located in Wisconsin and Illinois.

Instances of fraud remain rare in retail automotive, although they frequently earn
national attention when they occur. The news of illegal conduct within dealerships,
regardless of authenticity, frustrates the efforts of many storeowners who are
seeking to strengthen consumer trust in the midst economic uncertainty.
Thorough understanding of the regulations surrounding areas of finance, data
security, titles, etc. are a necessity in the car market of today.

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Colin Velez
Colin Velez
Colin Velez is a staff writer/reporter for CBT News. After obtaining his bachelor’s in Communication from Kennesaw State University in 2018, he kicked off his writing career by developing marketing and public relations material for various industries, including travel and fashion. Throughout the next four years, he developed a love for working with journalists and other content creators, and his passion eventually led him to his current position. Today, Colin writes news content and coordinates stories with auto-industry insiders and entrepreneurs throughout the U.S.

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