Attorney General Raúl Torrez Seeks Restitution for Victims Affected by Carite of Gallup’s Deceptive Business Practices 

Santa Fe, NM – Today, Attorney General Raúl Torrez filed a lawsuit against Carite of Gallup and their company leadership. The lawsuit alleges that Carite of Gallup directed the use of “trade-in-schemes” that have burdened consumers with thousands of dollars in debts and wreaked havoc on their credit scores. The lawsuit arose from numerous complaints sent to the New Mexico Attorney General’s Office and New Mexico Legal Aid.

Carite of Gallup management allegedly directed their staff to engage in trade-in-schemes that consisted of the business negotiating with the consumer to trade in their vehicle, on the belief that Carite of Gallup would pay the balance of the loan. However, consumers who agreed to trade their vehicles with Carite of Gallup began receiving phone calls from debt collectors. Upon research, consumers uncovered that Carite of Gallup failed to pay off the car loans of the trade-in vehicle, as promised, leaving consumers liable to pay. These debts consumers would be sent to collection agencies, severely impacting consumers’ credit scores.

The business also allegedly did not register vehicles within the timeframe as required by law and failed to fund Gap Insurance and other add-on products consumers believed they were receiving upon purchase of a vehicle. The defendants are also accused of falsifying credit applications leaving consumers with a car payment they could not afford. It is estimated that the victims of Carite of Gallup have cumulatively lost thousands of dollars from these unfair trade practices based on the information gathered thus far.

“The defendants in this lawsuit have ruined consumers’ credit scores,” said AG Torrez. “They have saddled these consumers with debt and caused endless amounts of financial stress. Today we filed this lawsuit to gain restitution for the victims and impose serious sanctions against the dealership and its leadership. We request that the court restrain the business and its entities from continuing these actions to ensure this does not happen to other responsible consumers.”

We urge others who have had similar interactions with this business to come forward and file a complaint with our office either online or by calling us at 1-844-255-9210.

A copy of the complaint is below.

K and T LLC dba Carite of Gallup Kaul Corley Complaint

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