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Financier subject to Day in Court Act: judge

November 22, 2010
A recent U.S. District Court ruling in the Northern District of Illinois proved welcome for dealers inasmuch as it precludes factory-controlled financing companies from avoiding accountability under federal and state laws. In the case of Ridge Chrysler-Jeep et al. vs. Daimler Chrysler Services, the judge on Feb. 25 affirmed an earlier decision (Guardino vs. Chrysler Corporation) that Chrysler Financial, a wholly owned subsidiary of DaimlerChrysler Corporation, is subject to the Automobile Dealers' Day in Court Act and the Illinois Motor Vehicle Franchise Act. Chrysler Financial had argued that only the manufacturer is governed by each of those laws.