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June 26, 2004 - Subscribe - Contact Us - Rate Card - Place an Ad Valley&State Backpage O&E Sports Archives Classifieds Faith&Beliefs Obituaries Revels May 22, 2004 Customers sue Lithia Motors for loan fraud The Associated Press EUGENE - Two-dozen customers of Ashland-based Lithia Motors, one of the nation's biggest auto dealership chains, are suing it for more than $40 million, alleging racketeering, fraud and unfair trade practices. Two lawsuits have been filed with U.S. District Court in Eugene. The customers claim dealers altered loan documents without the customers' knowledge to sell and finance cars to people who otherwise would not be eligible. They also claim, among other things, that Lithia did not disclose financing rates and costs to customers and at times told them the interest rate was the best available when the customer could have applied for a lower rate. The suits say the company then sold the loans at a profit. The company's chief executive, Sid DeBoer, defended company practices and said it was proud of them. He said he could not comment on the details in the lawsuits. In a filing with the Securities and Exchange Commission this month Lithia said it has written policies and training to avoid such activities. It said it has resources to cover the losses should the claims be proven true. Lithia is the eighth-largest dealership in the country, with 83 stores in 13 Western states. It went public in 1996 and since then has recorded annual revenue growth rates of 51 percent. In 2002 a former Lithia finance manager, Joe Kiefer II, filed a wrongful dismissal claim, saying the finance staff knowingly pressured employees to close deals by falsifying financial information. He and Lithia reached an undisclosed settlement. One of the lawsuits combines complaints of 23 customers. The lawsuits seek compensation for actual and punitive damages and for mental stress. DailyTidings.com Home Page Valley&State | Backpage | O&E | Sports | Archives | Weather | Classifieds Columnists | Faith&Beliefs | Obituaries | Revels | Subscribe | Contact Us Copyright 2004 Ashland Daily Tidings and Ottaway Newspapers All Rights Reserved Click Here Site Search: .:Advertisements:. RESOURCES - Mail Tribune News - ODOT Road Cams