Justice Catalyst Law and a coalition of nonprofit consumer-advocacy and public-interest organizations submitted a letter to the Colorado Motor Vehicle Dealer Board demanding that the board take action to cease an abusive tactic employed by the Colorado auto dealer industry. In particular, the letter addresses “yo-yo” clauses, which dealers use to sell a car conditioned on obtaining financing, and then when financing falls through, apply leverage to impose worse financing terms or extract fees for use of the car if consumers decide to return it.

 

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