Red Rock gets over 15x the complaints of other major G.J. auto dealers, but only slaps on the wrist by the state Auto Industry Division

An open records request to the Colorado Department of Revenue Auto Industry Division (AID) seeking all complaints submitted about the major Grand Junction auto dealerships over the last two years showed no complaints were submitted against Western Slope Auto, which sells Ford, Lincoln & Toyota, no complaints were submitted against Ed Bozarth Chevrolet & Buick, no complaints were submitted against Grand Junction Chrysler-Dodge-Jeep-Ram, and no complaints were submitted against Jim Fuoco Motors or Fuoco Honda in 2021, before it was sold to Red Rock Auto Group in April of 2022, but within the last two years at least 15 complaints were submitted about Red Rock Auto Group’s stores. There were at least two more complaints beyond the 15 documented ones the Auto Industry Division sent that were submitted against Red Rock, but one of them was still undergoing investigation and they could not release information on it, and the other was dismissed after the complainant chose not to pursue it further. Another complaint against Red Rock was submitted to the Colorado State Attorney General, who is investigating it. This makes a total of 18 known complaints lodged against Red Rock Auto Group stores in Grand Junction in the last 2 years.

The 15 complaints for which records were obtained consisted of 8 against Red Rock Nissan, 4 against Kia and 3 against the Hyundai dealership.

Most of the people who filed complaints cited more than one violation, too. In some complaints, the AID investigator spotted legal violations by Red Rock that the customers themselves didn’t even notice, for example the rate of interest for a customer’s loan was inconsistent in several places within the documents. The breakdown of the complaints was as follows:

  • Failure to deliver a vehicle title within the legally-required 30 days  – 7 complaints
  • Failure to honor the advertised price for the vehicle – 4 complaints
  • Listing different loan interest rates in different places in the paperwork  – 4 instances
  • Mentions of forgery – 2 in the course of making other complaints
  • Failure to payoff trade/ “equity skimming” – 1 complaint
  • Misuse of auto dealer demo plates – 1 complaint
  • Failure to notify a customer within 10 days that their financing had fallen through  – 1 complaint

Equity skimming of a vehicle is a Class 6 felony in Colorado.

“Equity skimming” is when a dealership takes possession of a vehicle that has a loan on it in exchange for some consideration (even a verbal promise to a customer), and then sells or leases it to a third party without first getting permission from the creditor who holds the loan, or making sure the loan balance is paid off.

In Colorado, equity skimming of a vehicle is a Class 6 felony  punishable by imprisonment of 12 to 18 months and fines ranging from $1,000 to $100,000. Examples of other Class 6 felonies include invasion of privacy for sexual gratification and impersonating a peace officer.

Forgery is a class 5 felony in Colorado.

Both mentions of forgery in the complaints (Complaints # 21-0309 and 21-0310) involved Red Rock Nissan, but it appears the dealership got no specific warnings or suffered any consequences related to the customers’ claims of forgery. Rather, it appears the AID paid no attention to it, and instead both the complainants and the AID focused on Nissan’s failure to follow through on deals the dealership made with the customers to compensate them for the accused forgeries. No investigations were made into the claims of forgery and no criminal charges were levied against Red Rock even though in Colorado, forgery of a legal or financial document is a class 5 felony punishable by one to three years in state prison and a fine of $1,000 to $100,000.  Rather, the AID appeared to turn a blind eye to the accusations of forgery, and let Red Rock off the hook in exchange for the dealership compensating the customers who spotted the crime and reported it.

In all complaints, the AID found Red Rock had violated one or more state statutes governing motor vehicle commerce and issued only written and/or verbal warnings that cited Colorado Revised Statute 44-20-121, which calls for the “denial, suspension or revocation” of a motor vehicle dealership’s license “for willful violation of any state or federal law respecting commerce or motor vehicles.”

These repeated warnings turned out to be empty threats, though. All Red Rock’s management had to do was tell the AID investigator some version of the following sentence:

“We understand and will do what we can to try and make sure this doesn’t happen again,”

.. and the AID never levied any consequences against Red Rock for any of their violations, even the most serious ones. Instead, the violations just get repeated over and over, with more letters sent.

No protection from the State — buyer beware

The fact that no complaints were submitted against other dealerships in town while so many were submitted against Red Rock seems to indicate that Red Rock is operating on a fundamentally different business model than the other dealerships in Grand Junction.

That has been borne out in the stories customers have told about their experiences in dealing with Red Rock. 

The facts show that a dealership can repeatedly cheat customers and violate state laws without suffering any consequences from the State agency charged with regulating them. So unless you take a lawyer or someone knowledgeable about buying vehicles with you to purchase a vehicle, no mechanism is in place to protect you from becoming the victim of fraud at the hands of a dealership, and no one will enforce your rights when you buy from a dealership and find you’ve gotten screwed. And Red Rock seems to know it.

Photo: Auto News

Given this, it’s no wonder Red Rock has been emboldened to find ever more creative ways to cheat customers and has done so more and more frequently over the time they’ve been in Grand Junction. They’ve never faced a serious consequence from any law enforcement agency for any of their violations, and know they won’t, so they were confident they could get away with it.

So far they’ve been right. In the rare case that a customer caught the dealership misusing their digital signature, adding unapproved overcharges or on a forgery, the dealership simply compensated the customer and got off the hook for wrongdoing, no matter the level of severity or how often they engaged in that fraudulent activity.

The State provides no motive for dealerships to conduct business honestly, so the task falls to customers to push back by telling their stories about how they get treated at these dealerships, and agreeing to make that information public, so others know about it too, and potential customers get warned.

And more than likely Red Rock’s recent PR move of hiring of former state Auto Industry Division investigator Dale Sundeen into a purported enforcement role will change nothing, since Sundeen was the investigator who let Red Rock off the hook most often, in this case letting them skate on 13 of the 15 legal violations he found in the complaints.

 

#FraudRock

 

7 thoughts on “Red Rock gets over 15x the complaints of other major G.J. auto dealers, but only slaps on the wrist by the state Auto Industry Division”

  1. i too agree with the slap on the wrist from the state licensing board. they appear so legal and precise-just by reading the formal protocol expected.. i found myself wanting to bow a little bit–Until I got in there and read their minutes and found a 4th employee at one dealership–I currently am taking dealership and 3 of their employees to court for DECEPTIVE BUSINESS PRACTICES IN A RETAIL SALE-YO YO FINANCING AND SPOT DELIVERY SCAM -THEN I SAW ANOTHER EMPLOYEE WHO WORKS AT DEALERAHIP HAVING BEEN CHARGED WITH THE SAME. He got 60 days suspension and a $2500 fine.Hmm doesn;t seem quite BIG enough to evoke permanent change. Does anyone agree? Then what would you say if I tell you He only had suspension for 30 days and other 30 days are waiting for him if he does it again and only had to pay $500 with the other $2000 waiting for him to pay if he gets in trouble again. Doesn’t that feel kinda like a vaca instead of a punishment?

    I WAS SHOCKED! WHAT A PERFECT POSITION OF POWER-ABSOLUTELY WASTED–TO BE AT THE CORE OF THEIR EXISTANCE-AND ONE TIME A YEAR THEY GO UNDER THE MICROSCOPE AND IF NOT SATISFACTORY YOU CAN SLAM ON THE BREAKS-ALERT SPECIFIC AGENCYS-LET THEM BE FINED BY THEM-YOU ADD THE INDUSTRY WORTHY FINE–AND DON’T JUST COLLECT 1/2 OF IT-COLLECT IT ALL AND IF THEY DO IT AGAIN THEN REVOKE THEIR LICENSE-DON’T JUST CHARGE THEM THE REMAINING $2000 AND 30 DAY SUSPENSION -AND THATS FOR A 2ND VIOLATION. REVOKE THEIR PRIVELEDGES-PUT ENTIRE DEALERSHIPS ON SUSPENSION–10 TO 30 DAYS AT A TIME HOW MANY TIMES DO YOU THINK IT’D TAKE TO EVOKE REAL CHANGE-1 OR 2 MAYBE..AND THEN THEY’RE DONE- ISN’T THAT BETTER THAN DOING NOTHING AT ALL FOR EVER TO MAKE THE JUDGEMENT COUNT-ONCE AND FOR ALL-RATHER THAN A SLAP ON WRIST-OVER AND OVER-DO YOU KNOW I COULDNT EVEN FIND AN ATTORNEY TO AT LEAST STAND UP WITH ME IN COURT–AS I GO UP AGAINST GOLIATH–ONE LOCAL LAW FIRM -WITH A MOTTO OF “WE GOT YOU” TO THE AVERAGE WORKING MAN HAD THE BALLS TO SAY-WE CANT TAKE YOUR CASE-EVEN IF WE WIN IT WOULDNT BE ENOUGH TO COVER OUR FEE—OMGOODNESS-ID HAVE THOUGHT ANY VICTORY OVER DEALERSHIP FRAUD IS WORTH CELEBRATING..AND THOUGH I DONT AGREE TO PAY ATTORNEYS ONE CENT MORE- IT DOES SEEM LOGICAL TO SAY-THE SETTLEMENTS TO CONSUMERS NEED TO BE 25+% MORE-ENOUGH TO PAY A NORMAL FEE TO ATTORNEYS WHICH MIGHT IN TURN ENCOURAGE THEM TO TAKE OUR CASES

    SO MANY AGENCIES INVOLVED–WITH SOME DECENT FINES-CONSUMER PROTECTION HOT TOPIC-A LOT OF WORDS SPOKEN-LAWS WRITTEN-YET STILL FAILS-WHY? BECAUSE THERE ARE ZERO CONSEQUENCES IN PLACE WITH BIG ENOUGH TEETH TO DETER DOING IT AGAIN. THATS WHERE THE JUDGES COME INTO PLAY–WITH ONE JUDGEMENT HE COULD CHANGE AN INDUSTRY..WHICH IN TURN BUILDS A BRIDGE BACK TO THE COMMUNITY-THAT THEY CAN SEE JUSTICE FINALLY BEING SERVED AND THEY GAIN CONFIDENCE THEY CAN BRING A LARGE COMPANY TO COURT-EXPLAIN THE SITUATION -BE HEARD AND RECIEVE A FAIR AND JUST SETTLEMENT.

    SIDEBAR–NEED TO SCRAP THE UNIVERSAL DEALERSHIP CONTRACT–SPECIFICALLY DESIGNED WITH ALL THE CLAUSES RELEASING THEM FROM ANY LIABILTY-LEGALLY OR OTHERWISE. EMPOWERING THEM TO WRITE A CONTRACT FULL OF TRAPS AND JARGON. MAKING PURCHASING A VEHICLE MORE LIKE RUSSIAN ROULETTE.

    SHOULD ALSO JUST SCRAP THE SPOT DELIVERY LEGAL EXCEPTIONS–THE REASONING USED IS NO LONGER A UNIVERSAL PROBLEM-BEING UNABLE TO SECURE FINANCING ON WEEKENDS AND HOLIDAYS-FINANCING APPROVAL IS AVAILABLE 24/7 VIA THE WEB.

    THE REST OF IT SAYS-YOU CAN’T RELEASE A VEHICLE THAT DOESNT HAVE 100% FINANCING IN PLACE UNLESS YOU CAN GUARENTEE THEY WILL BE APPROVED FOR AMOUNT STATED..VAGUE ENOUGH BECAUSE TOO EASY TO GET OUT OF-IT WAS A FEELING-SHOULD HAVE BEEN -YOU PROVIDE THE FINANCIAL WORKSHEET THAT SHOWS THEY MEET THE REQUIREMENTS NEEDED AND 1 OR 2 LENDERS THAT WOUI;D WELCOME THEM ON MONDAY. ITS NOT THAT COMPLICATED COMES FROM THE SCHOOL OF MOM–TAKE THE 1ST OPPORTUNITY GIVEN TO MAKE IT COUNT–WHEN DISCIPLING CHILD LETS THIS BE THE LESSON LEARNED-NEVER TO HAVE TO DEAL WITH IT AGAIN. WHY WOULD I WANT TO DEAL WITH THIS ISSUE AGAIN-BECAUSE I JUST SLAPPED THE WRIST-HE DIDNT MAKE A CHANGE IN HIS THINKING-AND HE DID IT AGAIN AND NOW THIS TIME EXPECTS ME TO FORGIVE AGAIN- SAME GOES FOR MAKING A CHANGE-BIG ENOUGH TO CHANGE THE WAY THE INDUSTRY DOES BUSINESS FROM NOW ON-TO ONLY HAVE TO SAY IT ONCE-

    AND THEN SIT BACK AND WATCH JUDGE AFTER JUDGE IN EVERY STATE EVERY COUNTY BEGIN TO JOIN IN THE NEW WAVE THATS SWEEPING ACROSS THE COUNTRY. AND I TRULY BELIEVE THATS JUST THE BEGINNING–YOUR COURT ROOM WILL BALANCE OUT EACH DAY-LESS AND LESS CLAIMS IN THE FRAUD DEPARTMENT-EASING THE LOAD OF THE ENTIRE LEGAL SUSTEM-LETTING YOU GET BACK TO UPHOLDING THE LAW

    ID LOVE TO HEAR MORE OF YOUR VIEWS ON THE RED ROCK INCIDENT-AND THE DEALER BOARD–PSST WANNA KNOW A SECRET–AS I RAVAGED YOUR PAGES–ALL OF A SUDDEN I SAW MY 4TH EMPLOYEE’S NAME LISTED AMONGST YOUR PAGES. ISN’T THAT A COINCIDENCE ? JUST A HIGH PROFILE FACT THAT CAN BE ASSOCIATED WITH MY 4TH EMPLOYEES NAME LEAVING A FEELING OF BEING SHADY-DECEPTIVE-ETC. AND EVEN THOUGH HE WAS NOT INVOLVED IN MY TRANSACTION IT STILL SHOWS DEALERSHIP RETURNING HIM TO HIS POST AS IF NOTHING HAPPENED-WHICH IS EVIDENT BASED ON ZERO PROACTIVE ACTIONS TAKEN TO INSURE THIS NEVER HAPPENS AGAIN.

    I’D SAY TO WAKE THE UPPER MANAGEMENT–ASSIGN A NUMBER OF SALESMEN TO EACH SR EMPLOYEE. MONITER THEM-SPOT CHECK THEM-GO OVER EACH CONTRACT BEFORE CUSTOMER SIGNS-IF THAT HAPPENED WITH MY CONTRACT ID NOT BE IN THIS MESS. HOPEFULLY THE SR ADVISOR WOULD HAVE KNOWN THE LENDER DOES NOT OFFER 10% LOANS. ID LIKE TO SEE THEIR YEARLY TRAINING SCHEDULE-WHOSE IN COMPLIANCE AND WHOSE NOT-LAST TIME SCAMS-TAUGHT-FINANCE TAMPERING-USE FORCEFUL TACTICS TO GET A SALE-THREATENING TO KEEP DOWN PAYMENT

    SORRY SO LONG WINDED-IM JUST SO PASSIONATE ABOUT THIS TOPIC-IT IS JUST SO OBVIOUS WHERE ITS BROKEN DOWN-YET THE CORE CHECK POINT ADVANTAGE IS BEING WASTED AND TIME AFTER TIME PROVES DOES NOT USE THEIR POWER OF OFFICE TO EVOKE REAL CHANGE–TO PASS A JUDGEMENT AND TO COLLECT FULLY ON IT-NOT SLAP THE WRIST THEN THREATEN TO IMPOSE THE REST OF JUDGEMENT IF THEY DO IT AGAIN–MEANING A 2ND TIME VIOLATING AND THEY JUST HAVE TO FINISH PAYING 1ST OFFENSE JUDEGEMENT. PERSONALLY, ID SAY THE 2ND VIOLATION EQUALS TERMINATION OF LICENSE. END OF HAVING THE PRIVELEDGE TO HAVE THIS PROFESSION-BEING AN ASSET TO THE CONSUMER-HELPING THEM NAVIGATE THE PROCESS-ADVOCATING FOR THE BEST PRICE-THE BEST FINANCING-THE BEST MECHANICALLY SOUND VEHICLE YOU HAVE AND SOON YOUR REPUTATION PRECEEDS YOU-YOU GET SOME PERKS AND BROWNIE POINTS TOO IT JUST PLAIN FEELS GOOD TO EXCEL IN YOUR JOB-WHICH DOESNT EVEN FEEL LIKE WORK-AND TO HAVE DONE IT HONORABLY. NOT HAVING TO LOOK OVER YOUR SHOULDER ALL DAY. THOSE EMPLOYEES NEED A LOT MORE PRAISE AND REWARD-DEALERSHIPS NEED TO LEARN TO RECOGNIZE THESE SOLID EMPLOYEES THATS THE STAFF YOU SHOULD HAVE-ONES THAT WILL PROMOTE YOUR REPUTATION NOT PUT YOUR DEALERSHIP BUSINESS LICENSE ON THE LINE- OKAY-THANK YOU FOR LETTING ME RAMBLE AND ORGANIZE MY THOUGHTS.. I HAVE OPEN EARS TOWARD YOUR REPLY

  2. Litonya Haylor

    I purchased a Hyundai Tucson from them in 2021 and have had problems from the beginning and in there shop too many times to count, with them telling me it could be this or that but never fixing the problem.
    The car has increasingly gotten worse and is unsafe to drive. I recently had to purchase another car to drive to work and I’m not sure what I can do. Lawsuit? lemon Law? any info would help.

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