May 3, 2010
Office of The Attorney General
– Paula T. Dow, Attorney General
Division of Consumer Affairs
– Sharon Joyce, Acting Director
Media Inquiries-
Jeff Lamm
973-504-6327
Citizen Inquiries-
609-292-4925
Brake-O-Rama Auto Repair Shops and State Reach Settlement
NEWARK – Attorney General Paula T. Dow and Acting Consumer Affairs Director Sharon Joyce today announced that the Brake-O-Rama auto repair chain has agreed to a $250,000 settlement with the state, and also will revise its business practices, under a Consent Judgment that resolves a lawsuit filed by the Office of the Attorney General and the Division of Consumer Affairs last August.
Brake-O-Rama, a Lodi-based company that operates 13 retail locations in New Jersey, allegedly charged consumers for repair work that was not actually performed. Brake-O-Rama also allegedly advertised and sold motor vehicle inspection services when its stores were not licensed by the state Motor Vehicle Commission (MVC) to perform inspections.
Pursuant to the settlement, Brake-O-Rama has agreed to pay $125,000 to the state in civil penalties, and reimburse the state for attorneys’ fees and investigative costs. The civil penalties will be suspended for a one-year period during which time, the state can seek payment from the balance in the event Brake-O-Rama fails to comply with the settlement terms. In entering into the settlement, Brake-O-Rama made no admission of liability or wrongdoing.
“We will act, as we did in this matter, when we believe New Jersey consumers have been taken advantage of and our consumer protection laws are violated. Particularly, in these tough financial times, every dollar matters to the consumer,” Attorney General Dow said.
The state filed suit against Brake-O-Rama last August following a series of inspections by Consumer Affairs’ investigators.
Under terms of the Consent Judgment, Brake-O-Rama agreed to:
“These agreed-to business practices will ensure that consumers get the services that they pay for,” Acting Director Joyce said.
Deputy Attorney General Jeffrey Koziar of the Consumer Fraud Prosecution Section represented the state in this action.
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