Rocky Mountain Auto Brokers Sued Over Mandatory Automatic Payment Requirement in Installment Contracts

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Two Colorado Springs consumers have filed suit against Rocky Mountain Auto Brokers, Inc. accusing the car dealership of unlawfully requiring customers who enter into installment sales contracts to enroll in automatic payment plans.

The plaintiffs, who the case says purchased cars from the defendant in September and December 2017, respectively, claim the dealership’s representative “advised” them that they “would have to enroll in an automatic payment plan” for their loans to be approved. Although the plaintiffs ultimately agreed to the plans, the suit alleges the defendant violated the Electronic Fund Transfer Act (EFTA) by “conditioning the extension of credit to Plaintiffs and the class members upon their repayment by preauthorized electronic fund transfers.”