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[ATG] State reaches agreement with auto dealer after charging fees without providing protective coating
Start Date: 5/1/2014 All Day
End Date: 5/1/2014
Entry Description

MUNCIE, Ind. – Indiana Attorney General Greg Zoeller’s office reached a settlement with Kia of Muncie after the dealership charged customers for Xzilon exterior paint protection, but failed to apply the coating.

The state launched its investigation after receiving a tip from a former employee that the dealership continued to charge consumers for the product, even though it had run out of its supply and stopped applying it to vehicles.

“Kia of Muncie failed to apply Xzilon exterior protection to vehicles despite advertising it had been applied,” said Terry Tolliver, deputy director of the Consumer Protection Division. “This settlement ensures those consumers who were impacted were made whole again, but consumers should always be leery of dealer add-ons when purchasing a vehicle, especially for those products that you cannot see.”

Silver III, LLC, doing business as Kia of Muncie, was unable to verify whether specific vehicles actually received the paint protection due to difficulty in obtaining the product, a lack of communication between the employees responsible for applying the product and those responsible for ordering it, and employee turnover. In reaching a settlement with the attorney general’s office, Kia of Muncie did not admit liability, but arranged for those customers who purchased a new car and paid for Xzilon exterior protection to come back into the dealership to have the coating applied, or to receive a full refund.

The dealership has already contacted the affected customers and the majority of consumers returned to have the coating applied. More than 65 consumers who did not return to the dealership will receive a $599 check refund via the attorney general’s office.

The terms of the settlement were approved by the Delaware County Circuit Court earlier this month. As part of the agreement, Kia of Muncie agreed to follow the Deceptive Consumer Sales Act in future consumer transactions and pay the state $3,000 in costs.

Consumers who believe they have been ripped off can file complaints with the attorney general’s office by visiting or by calling 1-800-382-5516 to request a complaint form be mailed or faxed to them.


Contact Information:
Name: Erin Reece
Phone: 317.232.0168
Attachments For This Entry:
    > Copy of AVC petition_KiaofMuncie
    > AVCApproved_KiaofMuncie
Entry Type:
Press Release
Entry Category:
  • Announcements
  • Category:
  • Government
  • Agency Name
    Attorney General

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