On Tuesday, a U.S. federal court approved a request from the National Automobile Dealers Association for a temporary restraining order to stop the Fords from repaying $1.4 million in loans from the U.K. car dealership Motley Fool, which has been in the news for a number of scandals involving its handling of loans.
The dealership, which is part of the U,K.
branch of the FCA, has agreed to pay the $1 million in back payments.
The National Automotive Dealers Assn.
argued that the U-K.
dealership’s practices constituted fraud.
The group filed suit in April 2015, alleging that the company “engaged in an unlawful practice of lending to and engaging in a scheme to conceal the origin of the vehicles it loaned.”
The lawsuit alleged that the dealership, headed by Paul Williams, used “false and misleading representations to entice the consumers into participating in the scheme” and that it “facilitated a scheme of deception to collect on loan payments, thereby obtaining unauthorized profits.”
The suit was brought by the National Consumer Law Center and the National Law Center on Consumers and the Economy.
The FCA said that it was not aware of any of the allegations made by the suit, which were filed in a case brought by Consumerist in June.
“We are confident that we will prevail in our case against the National Auto Dealers association, and that the settlement will restore and preserve the integrity of the auto loan marketplace and its customers,” said FCA President and CEO Greg McNeilly in a statement.
The car dealership had said that the suit was “based on nothing more than a flawed and politically motivated complaint, and we will vigorously defend against it.”
Motley-Fool, founded in 1974, has operated in the U.,K., France, Germany, Belgium and Sweden.
The company, which was acquired by the F.D.A. in 2011, had also been accused by the U (and subsequently the UK) of violating loan fraud laws in the United Kingdom and elsewhere.
The UK’s Financial Conduct Authority, which oversees financial services in the country, last year fined Motley Financial for failing to report the loans made by its customers to the FTA.
In its lawsuit, the National Consumers League said that Motley had “tortured and deceived consumers into making loans that they knew were not eligible for them, and failed to warn them of the potential risks involved.”
Mot, the U.-K.
arm of the group, has since been forced to shut down its UK business and has filed for bankruptcy protection.