Indiana Orders Six Dealerships to Reimburse Motorcycle Buyers for Excessive Doc Fees

Attorney General Todd Rokita has announced agreements with six Indiana motorcycle dealerships that allegedly charged excessive document-preparation fees to more than 1,700 Hoosier consumers over a two-year period. The agreements call for the dealerships – located in Plainfield, Bloomington, Lafayette, Michigan City, Kokomo, and Valparaiso – to send $100 restitution checks to each consumer who purchased a vehicle from the dealerships during the relevant dates. The dealerships will pay a total of $174,000 in restitution.

“I will do all I can to put money back into the pockets of Hoosiers who fall victim to deceptive business practices,” Rokita said. “We are pleased that these dealerships have agreed to send checks to affected Hoosiers and to lower their document-preparation fees in accordance with Indiana law.”

The state accused the dealerships of charging fees in violation of an earlier version of Indiana law that limited the types of fees dealers could charge for document preparation. Under current Indiana law, automobile and motorcycle dealers may not charge more than $200 for document preparation. If dealers advertise the sale price of a vehicle and charge a fee for document preparation, the document preparation fee must be included in the advertised price, current law states.

At the time, the dealerships had never determined the actual costs of preparing documents for a motor vehicle sale and arbitrarily chose to charge $299, the state alleged. During the state’s investigation, the dealerships were only able to come up with approximately $200 worth of document-preparation expenses per vehicle. After May 1, 2019, the dealerships lowered their document-preparation fees to $199.

The impacted dealerships include Indywest Harley-Davidson, Inc., Piranha Incorporated dba Harley-Davidson of Bloomington, Hunter’s Moon Harley-Davidson, Harley-Davidson of Kokomo, Inc., Harley-Davidson of Valparaiso, Inc. dba The Harley-Davidson Shop of Michigan City, and Honda of Michigan City.

Source: State orders six dealerships to reimburse motorcycle buyers for excessive document-prep fees