Attorney General's News Release

August 10, 2006

ProCycle dealerships to pay $114,000 to 364 consumers, $84,000 in other payments in settlements with Nixon

Jefferson City, Mo. — The ProCycle dealerships in Springfield and Columbia will pay more than $114,000 in settlement payments to the Attorney General's Office for the benefit of 364 consumers and $84,000 to the state under settlements with Attorney General Jay Nixon. Nixon sued the owners of the ProCycle dealerships in January, alleging they misled consumers by failing to disclose certain fees and charging three percent for use of a credit card.

"Many consumers are price-conscious and will shop with merchants if they believe they are getting good deals on the prices," Nixon said. "That becomes a problem if the advertised price and the bottom line price end up being greatly disparate. Our settlements today not only will return an average of $315 to hundreds of ProCycle customers, they also will ensure that ProCycle complies with state laws to protect consumers from fraud and deception."

The ProCycle dealerships in Springfield are operated by Ozark Cycle Inc.; the Columbia ProCycle dealership is operated by Shernaman Enterprises Inc. Both corporations have the same ownership.

Nixon's lawsuits, filed Jan. 9 in Boone and Greene County Circuit Courts, alleged ProCycle lured customers through misleading advertisements. Nixon alleged the dealerships, in some instances, promised one price for merchandise while charging another. ProCycle employees would confirm the advertised price to customers, though some consumers who bought the merchandise complained that they were hit with additional unexpected fees for processing, set-up, credit card surcharges and other costs.

ProCycle will pay $114,749.26 in settlement payments to the Attorney General under the consent judgments. The defendants will also pay $30,000 to both the Boone County and Greene County School Funds, and a total of $24,000 to the state to cover the investigative and legal costs of the case.

Consumers who are entitled to settlement payments will be contacted by the Attorney General's Office in the next few months.

Consumers may file complaints with the Attorney General's office on any case by calling the Consumer Protection Hotline at 1-800-392-8222 or going to www.ago.mo.gov.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818