11
September
2025

Pennsylvania Dealers Under Siege

It's a scary time to be a Pennsylvania Car Dealer. The AG is targeting dealers large and small across the state. Learn what's getting dealers in their crosshairs and how to protect your business.

Pennsylvania Dealers Under Siege

In the past several months I’ve had a ringside seat to the brutal fight going on between some used car dealers and the Pennsylvania Attorney General. This is a situation of critical importance to our readers so I want to use my space in these pages to bring it to your attention.

The Power of Subpoenas
The fight to which I’m referring are voluminous subpoenas that the AG’s office is sending out to car dealers. I’m not talking about a single instance, I’m aware of several, and I’m only one person. I’ve heard of several other situations like this. Although I can’t be sure, it seems like these subpoenas are tied to the AG’s office, and perhaps the Better Business Bureau, receiving what they perceive as a high number of complaints related to a dealership. These subpoenas, if not handled correctly, are a “bet the company” challenge and, given the tight time-frame to respond, usually require “all hands on deck.

Some of you are probably thinking “it will never happen to me”. Oh yeah? Why is that?

Because “I’m too small” - not a valid argument.

“It’s never happened to me” - you mean it hasn’t happened yet.

“My customers don’t complain” - is that really true, or do they just not complain to you?

“I do business the right way” - can you prove it when your number comes up?

If you are the unfortunate recipient of such a request, it's important to know that these are not typically finely targeted, they tend to be broad in scope so that the AG can learn as much as possible about the business. Examples include, lists of all consumers that purchased a vehicle during the relevant time-period, which can go back four years, all repossessions during the time frame, deal jackets, account notes, advertising materials, information about “make ready” and repairs, complaint history, employee records, policies and procedures for various dealership functions, and lots more.

This is the business equivalent of a colonoscopy, and the consequences of failing to produce relevant documents can be quite severe and invite further regulatory scrutiny.

Complaint Management is the Key
Complaint management is the key to avoiding this type of scrutiny, as there appears to be a correlation between complaints and getting on the AG’s radar. It isn’t just enough to be responding to complaints, the business has to show that it has conducted a reasonable investigation, is keeping track of complaints, and looks for ways to improve its business. Does your team know what is considered a complaint at your business? Does it know who is responsible for responding? Does your personnel know where to log complaints and keep track of them?

In one of the matters I observed, the company had in fact been responsive, but in reviewing those responses it was apparent that its impulse was to blame the customer and not view its own business with a critical eye. That can be dangerous, because you can be sure that the regulator will look with a lot more objectivity. Keeping a log of complaints and meeting on a regular basis to discuss them are both good habits to develop. Not only does it make it easier to respond to this type of subpoena, but it will reinforce good habits and encourage complaint resolution, which makes it less likely that customers will complain.

Other Considerations
Keeping good records is of critical importance when the business is given a month or less to gather voluminous amounts of information. Having a CRM, DMS and service department software that are integrated makes life a lot easier. So does having a record retention policy and document destruction schedule that supports any destruction of records that did take place.

Who will be ultimately responsible for gathering the documents and responding to the complaint? Will you handle this internally, or will you need external resources like consultants and attorneys? Who is the ultimate authority in your business when it comes to making these decisions? The time to consider these questions is now, before you are faced with a deadline and a scary amount of work.

Conclusions
I wrote this to make our readers aware of what is going on in this state. It’s important to understand the current climate, consider spending some time developing skills in complaint management to avoid being a target, and have a plan in place ahead of time so that you are prepared if faced with this type of subpoena. Please reach out to me This email address is being protected from spambots. You need JavaScript enabled to view it. if you’d like to discuss this subject in more detail.

As seen in our Magazine

Categories: Dealer News Stories

Steve Levine

Steve Levine

Steve Levine is an auto finance lawyer with over 30 years of experience protecting car dealers and finance companies. He is an owner and Chief Legal and Compliance Officer of Ignite Consulting Partners, which offers guidance on compliance, operations and best practices. He has also published two books, Winning the Fight: A Guide to Protect Car Dealers and Counterpunch: Compliance Strategies for Car Dealers which are both available on Amazon. Or contact info@IgniteCP.com to learn more. Please follow Steve on X @LawyerLevine for compliance and industry related content.

Read more

Image