Maryland car dealership accused of making millions by charging buyers with fake fees

WHEATON, Md. (7News) — Lindsay Automotive Group has been accused of charging buyers millions of dollars in junk fees and unwanted add-ons by the Federal Trade Commission and Maryland Attorney General.

The complaint charges the company’s part-owner and president Michael Lindsay, COO John Smallwood, and the dealerships’ former general manager Paul Smyth. Lindsay Automotive Group owns Lindsay Chevrolet of Woodbridge; Lindsay Ford of Wheaton; and Lindsay Chrysler-Dodge-Jeep-Ram.

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According to the complaint, Lindsay would advertise one price on its website, on the phone, and in their advertisements — then charge consumers hundreds of thousands more in the dealership. Then, they would claim that this was because the buyer did not qualify for the rebate program or because of additional fees.

One dealership manager allegedly told a customer, that “no one would qualify for it because it was nearly impossible to qualify for all the rebates to get to that price.”

88 percent of people who bought a car from Lindsay Automotive between 2020 and 2023 paid more than the advertised price, according to a sample of transactions listed in the complaint. On average, people spend over $2,000 more than the advertised price.

“Buying a car is a significant financial investment. Marylanders deserve to know upfront how much they will actually pay for a vehicle and should not be surprised by hidden charges that they did not budget for,” said Attorney General Anthony G. Brown. “Our Office will not let car dealerships profit from unfair and deceptive practices.”

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Additionally, a survey cited in the complaint showed that more than a third of Lindsay shoppers were told that financing through the dealership was mandatory, or at least was mandatory to obtain the advertised price.

Lindsay received “kickbacks” from the financing companies, and customers were charged higher interest than they would’ve received on loans obtained elsewhere, according to legal documents.

In addition to unrealistic prices advertised and deceiving buys about their financing options, 68% of consumers were charged with services they did not buy or were told were required. Those may have included extra service plans or tire and rim protection. And charges amounted to hundreds or thousands of dollars for each consumer.

“Auto dealers who trick consumers with bait-and-switch advertising, financing sleights of hand, and unwanted add-ons should expect to hear from the FTC,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC and its state partners will continue working to combat this illegal conduct.”