State and Muscatine car dealership settle over loan rates - KWWL - Eastern Iowa Breaking News, Weather, Closings

State and Muscatine car dealership settle over loan rates

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MUSCATINE (KWWL) -

A Muscatine used car dealership and the State of Iowa have reached a settlement. The state accused A-1 Quality Used Cars of charging more than allowed on vehicle loans.

The Muscatine Journal says the Iowa attorney general's Consumer Protection Division has ended its investigation of A-1 Quality Tire and Car Service, also doing business as A-1 Quality Used Cars.

A-1 agreed to an assurance of discontinuance, which means it must comply with Iowa interest rate caps on auto loans.

A former manager increased interest rates without the owners' knowledge according to co-owner Connie Wiemers. Wiemers also says customers have been refunded the difference between what they were charged and the maximum amount allowed.

The cap for the cars sold is 27 percent. Some of the loans were for 30 percent and above.

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