Suit Claims Power BookingIn Used Car Deals
PRYOR, Okla. - (03/27/06) Western FCU filed suit lastweek against a local car dealer claiming it suffered damages ofmore than $500,000 in a used car power bookingscheme. In power booking, a dealership send an inflated invoice ofa used card deal to the lender, who unknowingly provides thefinancing at the inflated price. The credit union claims thatHawkes Motor Co. power booked at least 31 vehicles purchased fromthe car dealer that it would not have financed if it knew theactual value of the vehicles. Once the customers found out somestopped payments on the vehicle, while the credit union repossessedothers. Western FCU claims it lost $521,000 on the 31loans.