Attorney General Larry Long Signs Agreement with FSB Financial, Providing More Relief to Dan Nelson Customers
PIERRE, S.D.- Attorney General Larry Long and FSB Financial, Ltd., said today that they have reached an agreement that that will help resolve outstanding consumer complaints filed against Dan Nelson Automotive Group and Nelson’s in-house financing company, Car Now Acceptance Corporation (CNAC).
"This agreement allows us to continue to help additional consumers who have been burdened with the Dan Nelson situation," said Long. "I appreciate the steps that FSB Financial has taken to be proactive in providing loan modifications to provide relief to consumers."
FSB Financial has agreed to:
- Reduce the annual interest rate to 17.95% on all contracts they purchased from CNAC. Nearly all contracts sold by Dan Nelson Automotive were at a 24.5% annual interest rate.
- Make active retail installment contracts current, even if the consumer has not remained current on payments, and waive late fees or past due interest.
- Reduce the principal balance by the amount of $500 at the end of the consumer’s loan. When the principal balance reaches $500, FSB Financial will issue a $500 credit, and release the FSB Financial lien.
The modification to the terms of these loans should result in savings in excess of a million dollars. This agreement will affect 369 South Dakotans who have active Dan Nelson loans. These consumers will not need to do anything to participate. FSB modified the loan terms earlier today. Consumers who have been affected by these changes will receive a letter from Attorney General Long in the next week.
Long’s Consumer Protection Division is investigating complaints from consumers alleging that the Dan Nelson dealerships in Sioux Falls and Rapid City engaged in deceptive trade practices. FSB Financial is not accused of wrongdoing in those complaints, but reached the agreement with Long to provide relief to some Dan Nelson customers.
Long will continue to work with remaining financial institutions to obtain similar relief for the remaining Dan Nelson customers.
Consumers with questions about the agreement may call the Consumer Protection Division at 1-800-300-1986 or send email to firstname.lastname@example.org. FSB Financial customers may also contact FSB directly at 1-888-372-3868.