American Car Center Closure: What You Need to Know

Customers of American Car Center (ACC) are facing a period of significant uncertainty and concern following the company's sudden and nationwide closure on Friday, February 24th. Locations in Tampa, Seminole, and Lakeland, among others across the country, have ceased operations, leaving many customers in a difficult predicament regarding their vehicle leases, warranties, and service contracts. This article aims to shed light on the situation, address customer concerns, and provide guidance on the steps you can take.

The Abrupt Closure of American Car Center

The news of American Car Center's closure came as a shock to many of its customers. The dealership, which operated multiple locations, shut its doors permanently without prior notice. This has left a trail of unanswered questions and anxieties for individuals who had ongoing agreements with the company. The lack of communication from ACC has only amplified the distress experienced by its clientele.

Lease Agreements and Westlake Financial

One of the primary concerns for many customers revolves around their existing lease agreements. For those nearing the end of their lease, the worry is about how they will secure the title to their vehicles. Michael Robinette, a customer from Pinellas County, shared his predicament. Having made consistent payments for four years on a lease with only one payment remaining, he is now uncertain about the process of obtaining his car's title. His attempts to get clarity from Westlake Financial, the company that has taken over payment collection for former ACC leases, have been met with a lack of clear direction.

Joshua Feygin, a civil law attorney specialising in car leases, offers some advice amidst this uncertainty. He stresses the importance for all customers with outstanding leases to continue making their payments. Failure to do so could result in default, leading to potential repossession of their vehicles. Feygin explains that while Westlake Financial has acquired the business, the financial obligations tied to the leases remain. He acknowledges that it's a "wait-and-see" scenario regarding how Westlake Financial will handle these obligations, but maintaining payments is crucial to avoid further complications.

Understanding Your Lease Obligations

It is vital to understand that your lease agreement is a legally binding contract. Even though American Car Center has closed, the financial responsibility for the lease continues. Westlake Financial's role is to collect these payments. Missing payments could negatively impact your credit score and lead to the repossession of your vehicle. Therefore, even without clear communication from Westlake Financial, continuing to make your scheduled lease payments is the most prudent course of action to protect your interests.

Warranties and Service Contracts

Beyond lease payments, another significant area of concern for ACC customers involves outstanding warranties and service contracts. Many customers feel they are in a difficult position as American Car Center is no longer fulfilling its obligations under these agreements. The question on everyone's mind is whether these warranties and service contracts will be honoured by Westlake Financial or any other entity.

As attorney Joshua Feygin points out, any issues related to vehicle repairs or warranty claims are separate from the financial obligations of the lease. While customers should continue making their lease payments, the honouring of service contracts and warranties remains uncertain. It is a waiting game to see if Westlake Financial will step in to cover these services, or if customers will need to seek alternative solutions.

What Recourse Do Customers Have?

The abrupt closure of American Car Center has left customers scrambling for answers and seeking recourse. While direct redress from ACC may prove difficult given its likely cessation of operations, there are avenues for customers to explore:

1. Continue Lease Payments

As previously emphasised, this is the most critical step. Honouring your lease agreement prevents default and repossession. Keep records of all payments made.

2. Contact Westlake Financial

Despite the lack of clear communication so far, continue to try and establish contact with Westlake Financial. Document all your attempts to communicate and any information or lack thereof you receive. Inquire specifically about the process for obtaining your vehicle's title upon final payment.

3. Report to Consumer Protection Agencies

The Florida Attorney General's office encourages American Car Center customers to report any unfair or deceptive behaviour, particularly concerning warranties, to their office. You can contact them by calling (866) 9NO-SCAM or visiting MyFloridaLegal.com. Filing a complaint formally registers your concerns and can contribute to a broader investigation.

4. Local Consumer Protection Offices

Depending on your location, local consumer protection agencies can offer assistance and guidance. For instance:

• Pinellas County Consumer Protection: Customers in Pinellas County can seek assistance from their consumer protection services.
• Hillsborough County Consumer Protection: Customers in Hillsborough County can contact their consumer protection department at 813-903-3430 or through their online portal.

5. File a Complaint with the Department of Labor

For former employees of American Car Center, the U.S. Department of Labor provides a channel to file complaints regarding employment-related issues.

Frequently Asked Questions (FAQs)

Q1: I'm still making payments on my American Car Center lease. What should I do?
It is strongly advised to continue making your lease payments to Westlake Financial to avoid default and potential vehicle repossession. Keep meticulous records of all your payments.

Q2: I'm close to paying off my lease. How do I get my car's title?
This is a primary concern for many. You should contact Westlake Financial directly to inquire about the process for obtaining your title upon completion of your lease payments. Document all communications.

Q3: What about my warranty or service contract with American Car Center?
Unfortunately, the status of these agreements is uncertain. American Car Center is no longer in operation to honour them. You may wish to report this to the Florida Attorney General's office and your local consumer protection agency.

Q4: Can I stop making payments since the dealership closed?
No, stopping payments is not recommended. Your lease agreement is with a financial institution, and Westlake Financial is now collecting those payments. Defaulting can lead to serious consequences.

Q5: Who is Westlake Financial?
Westlake Financial is a company that has taken over the collection of payments for car leases previously held by American Car Center customers. They are now the entity managing the financial aspect of these leases.

Conclusion

The closure of American Car Center has undoubtedly created a challenging situation for its customers. While the immediate future may seem uncertain, staying informed, continuing to meet your financial obligations on leases, and utilising the available consumer protection resources are crucial steps. By acting proactively and documenting all interactions, customers can best navigate this difficult period and work towards a resolution for their vehicle ownership and service agreements. ABC Action News continues to follow this story and will provide updates as more information becomes available.