The Kokomo Harley-Davidson dealership has agreed to pay restitution to some customers after the Indiana Attorney General’s Office alleged it charged excessive document preparation fees.
Attorney General Todd Rokita on Friday announced agreements with six Indiana motorcycle dealerships he said charged excessive fees to more than 1,700 people over a two-year period.
The agreements call for the dealerships to send $100 restitution checks to each consumer who purchased a vehicle from the dealerships during the relevant dates. The dealerships will pay a total of $174,000 in restitution.
The Attorney General’s Office the Kokomo Harley-Davidson dealership is sending checks to 504 customers.
The office accused the dealerships of charging fees in violation of an earlier version of Indiana law that limited the types of fees dealers could charge for document preparation.
Under current Indiana law, automobile and motorcycle dealers may not charge more than $200 for document preparation. If dealers advertise the sale price of a vehicle and charge a fee for document preparation, the document preparation fee must be included in the advertised price.
At the time, the dealerships had never determined the actual costs of preparing documents for a motor vehicle sale and arbitrarily chose to charge $299, the office alleged.
During the investigation, the dealerships were only able to come up with approximately $200 worth of document preparation expenses per vehicle. After May 1, 2019, the dealerships lowered their document-preparation fees to $199.
“We are pleased that these dealerships have agreed to send checks to affected Hoosiers and to lower their document preparation fees in accordance with Indiana law,” Rokita said in a release.
Other impacted dealerships include Indywest Harley-Davidson, Inc., Piranha Incorporated dba Harley-Davidson of Bloomington, Hunter’s Moon Harley-Davidson, Harley-Davidson of Valparaiso Inc. dba The Harley-Davidson Shop of Michigan City and Honda of Michigan City.