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AIADA surveys dealers on impact of frivolous lawsuits

November 23, 2010

Auto dealers have a significant opportunity in 2005 to impact the national debate on legal reform. Sen. Rick Santorum (R-Penn.), the Senate's third-ranking Republican, says class action reform "could be one of the first things we do" in 2005, partly because political will to reform the legal system has grown as a result of the November elections. Six of the nine incoming senators have strong records on legal reform, and two of the Senate's most vocal opponents of legal reform will soon depart office.

The American International Automobile Dealers Association intends to be involved in the upcoming debate on legal reform by sharing with lawmakers the impact that frivolous litigation has on AIADA dealer members.

The AIADA posted a legal reform survey on its Web site,, and asks dealers to spend two or three minutes to complete it. All participation makes a difference.

Area Chevy dealer faces class action suit over direct mail advertising
A declaration that the recipient of a direct mail solicitation is pre-approved for an auto loan has prompted a class action lawsuit against a Chevrolet dealer in suburban Chicago. The suit was filed in federal court Nov. 24.

"Information contained in your credit bureau report, obtained from a consumer reporting agency, was used in conjunction with selecting you for this offer," the solicitation states. The lawsuit charges that is a violation of the Fair Credit Reporting Act, which forbids a perusal of someone's bureau report without his approval.