Action 9: DMV investigators visit car dealership accused of mislabeling vehicles

CHARLOTTE, N.C. — FRIDAY UPDATE: DMV investigators could be seen on-site of two Auto House locations Friday entering the building. This comes after multiple reports from Action 9 of the dealership mislabeling cars.

Read Friday's update here.

Action 9 exposed Auto House last month after the dealership sold vehicles that were mislabeled as more expensive models than they were.

Last week, Action 9 found an advertisement on Auto House's website, “Coming soon," a top of the line Nissan Altima, an SL.

Once again, Action 9 checked the vehicle identification number, and it's not that model.

Now more customers are coming forward, two state agencies and a bank are investigating the car dealership, an auto financing company has suspended business with the dealership and Auto House is offering some customers refunds.

Theresa Darnell bought a Nissan Altima from Auto House and when she saw Action 9's initial report about the dealership selling mislabeled cars, she checked the VIN and discovered her car was mislabeled too.

It looks like she overpaid Auto House about $9,000, based on the Kelley Blue Book value.

"I was a little upset," she said.

In the meantime, North Carolina's Department of Motor Vehicles and the Attorney General's Office are both investigating.
 
Ally Bank, which allegedly financed vehicles for Auto House customers, is also investigating the dealership. 
 
A representative told Action 9, "Ally is investigating the matter and will take action as needed. Ally operates with the highest of integrity and if we encounter an issue we work to address the situation." 
 
Ally said if customers have questions, they should call 888-925-2559.
 
Santander Consumer USA has actually stopped financing Auto House vehicles. 
 
"We are currently not doing business with the Auto House dealership in North Carolina," a representative said. "The dealership had recently been reviewed as part of Santander Consumer USA's ongoing compliance and audit processes. Following the review the dealership was suspended from conducting business with Santander Consumer USA."

Auto House has been offering refunds to some customers like Darnell.

"Now that they fixed it and lowered my payments $40 a month, then, I'm happy with it so far," she said.

Former Union County District Attorney John Snyder says by offering those refunds, Auto House is just doing damage control. 
 
He believes the owners are trying to keep their dealer licenses and avoid criminal charges. 
 
"They should have a very real concern about losing their ability to sell cars and their ability to go home at night because of potential criminal violations," he said.

Action 9 reached out to the owners of Auto House Wednesday to get their side of the story. They had not responded by late Thursday afternoon.

Cox Media Group