Car lot sold vehicles without titles

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PHOENIX -- Frustration continues to mount around a small Phoenix car lot.

This car lot has reportedly caused a mess for a lot of car owners out there.

azfamily.com

Classy Auto reportedly sold at a lot of vehicles to people. The problem seems to be the car lot never had titles to many of those cars.

As a result, not only are people who traded in their cars in trouble, but so are the folks who made purchases from Classy Auto.

Kassie Leucsh had bought a 2002 Toyota Sequoia from Classy Auto, a car lot which has since closed down.

And although she had made all of her payments to Arizona Federal Credit Union where Classy Auto persuaded her to get financed, the car was still repossessed by a totally different creditor.

For Leucsh, it just didn't make sense.

"I was just shocked," Leucsh said. "I was lost, like, oh great, what am I going to do?"

The night that news report aired, Nichole Kokkeler was watching 3 On Your Side.

"I thought, there's my car," Kokkeler said. "That's what I've been trying to contact to find out the new owners to let them know what's going on."

And this is where these two women's worlds collide.

It turns out Kokkeler used to own the Toyota Sequoia but traded it in at Classy Auto for a Nissan Armada.

"It was perfect," she said. "It was the perfect family vehicle."

Classy Auto was supposed to take part of Kokkeler's loan, which she also obtained from Arizona Federal Credit Union, and pay off that Sequoia.

But instead, Kokkeler says the owner of Classy Auto reportedly kept the money, never paid off her loan and then resold the car to Leucsh without a title.

As a result, Leucsh has a loan, but she doesn't have a car because it was repo'ed.

And Kokkeler has that repossession on her record although she had already sold the car to Classy Auto.

"The repo's in my name," Kokkeler said. "I'm responsible for all the late fees since October. It's on my credit 30 days, 30 days and not a repo."

3 On Your Side has learned Leucsh and Kokkeler may not be alone in this mess. 3 On Your Side has obtained a letter from lawyers representing Arizona Federal Credit Union, saying at least seven other customers bought cars and now don't have titles.

"I'm very concerned about a situation where a seller of a vehicle is not able to provide a clean title, a lien-free title," said Arizona Attorney General Terry Goddard.

We told him about Kokkeler, Leucsh and the other Classy Auto customers who have found themselves in this jam.

Although the state's top consumer advocate did not want to get too specific, he did say his office is interested in looking into the matter.

"There might well be serious criminal involvement and we would like to take a look at it," Goddard said.

3 On Your Side tried numerous times to get a hold of the owner of Classy Auto. We even went to his home near Litchfield Park, but he never called us back.

If you bought a car from Classy Auto and you had a problem, the attorney general says he wants to hear from you.

He can only pursue cases when consumers file complaints.