Attorney General Larry Long Signs Agreement, Providing More Relief to Dan Nelson Customers
PIERRE, S.D.- Attorney General Larry Long and Auto Receivables Trust said today that they have reached an agreement 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 the Trust has taken to be proactive in providing loan modifications to provide relief to consumers."
The Trust purchased auto loans from CNAC, and those loans are now being serviced by EMCC, Inc. The Trust 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 24.95% 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, the Trust will issue a $500 credit, and release its lien.
The modification of the terms of these loans should result in savings in excess of a million dollars. This agreement will affect 112 South Dakotans who have active Dan Nelson loans. These consumers will not need to do anything to participate. Consumers who have been affected by these changes will receive a letter from Attorney General Long in the next several days.
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. Neither the Trust or EMCC is accused of wrongdoing in those complaints, but they 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. EMCC customers may also contact 1-866-523-4455.