DMV revokes Auto House's dealer's license, accused of purposely mislabeling vehicles

MOORESVILLE, N.C. — An Action 9 investigation exposed a local car dealership accused of fooling customers. Dozens of customers said Auto House mislabeled vehicles in order to sell them at a higher price.

Now, the Department of Motor Vehicles has revoked the company's license to sell cars at its Mooresville lot.

Action 9 spent the first six months of this year investigating Auto House, and then two state agencies, including the DMV Attorney General's Office, launched investigations of their own.

Now, in new court documents, the business admits it deceived more than 30 customers.

Customers thought they were buying higher-end vehicles.

"It was really aggravating," customer Philip Helms said.

Then, they realized they were paying for more basic models.

"You think you overpaid thousands?" Action 9 investigator Jason Stoogenke asked a customer.

"Oh, yeah," Crystal Moore said.

Action 9 spent months looking into the case meeting with customers, running their vehicle identification numbers and comparing those to what the cars and trucks said on their trunks.

As soon as DMV agents saw Action 9’s first report, they started investigating.

Soon, they were searching Auto House of Mooresville and seizing records.

TIMELINE: Auto House Investigation

• MAY 12: Action 9 exposes Auto House for selling mislabeled Nissan Altimas. 
• MAY 12: DMV launches investigation into both Auto House locations: Mooresville and Salisbury.
• MAY 19: Action 9 confirms Auto House also sold mislabeled RAM pickup trucks. 
• MAY 20: Attorney General's Office announces it is investigating Auto House.
• JUNE 2: Action 9 confirms more cases of mislabeled vehicles.
• JUNE 2: Bank stops financing Auto House customers; another bank confirms it's investigating.
• JUNE 3: DMV agents execute search warrants at both Auto House locations.
• JUNE 14: Action 9 confirms Auto House also sold a mislabeled Chevy Silverado pickup truck.
• JULY 22: Multiple customers accuse Auto House of not disclosing vehicle damage.
• OCT. 11: DMV revokes Auto House's Mooresville license and fines it $33,000.
• OCT. 14: Auto House gets permission to stay open while it fights DMV decision.
• NOV. 2:  DMV agents believe Auto House lied to get costumers financing

Auto House admitted it sold 35 vehicles while representing them as higher-model Nissans and Dodge Ram pickups, according to the legal documents.

DMV officials called these "unfair and deceptive business practices," revoked Auto House's license and slapped the business with a $33,000 fine.

Action 9's investigations were named in the legal papers on Auto House.
The DMV talked about Action 9's initial report and how, after that, Auto House reached out to 35 customers, offering them refunds or trade-ins.
Auto House ended up giving customers tens of thousands of dollars back.

Normally, the business would have to shut down immediately, but Auto House asked for a restraining order so it could stay open while it fights this, and a judge agreed.

"Both a temporary restraining order and preliminary injunction have been granted staying any action by DMV pending a full hearing on the merits,” Auto House's lawyer told Action 9. “Auto House has enjoyed a history of public service and a fine reputation within the industry over the years. Auto House, like all citizens, only asks that you let the process work in a fair manner, much like citizens rightfully enjoy the presumption of innocence."

Auto House also has a Salisbury lot. DMV agents are investigating, but at this point, haven't taken any legal action against it.

Cox Media Group