skip to Main Content

SC Supreme Court Upholds Verdict Against Car Dealership for Charging Illegal Closing Fees

On November 4, 2015, the South Carolina Supreme Court ruled in favor of 5,315 car buyers in their lawsuit against a Pickens County car dealership for charging improper closing fees.  In their lawsuit, the buyers sought damages under the South Carolina Dealers Act on the ground that the dealership “unfairly” and “arbitrarily” charged all of its customers “closing fees” that were not calculated to reimburse the dealership for actual closing costs.  The closing fees ranged from $249 to $399 per car, and the dealership failed to present evidence that it calculated the actual costs before charging the closing fee.

At trial, a jury returned a verdict in favor of the car buyers in the amount of $1,445,786.00 actual damages and the car dealership appealed that decision.  According to the State Newspaper this lawsuit is one of many lawsuits brought against car dealerships in South Carolina.  Some cases have settled, but many were waiting on the Court’s decision in this case.

In affirming the jury’s verdict against the car dealership, a majority of the South Carolina Supreme Court found that “any costs sought to be recovered by a dealer under a closing fee charge must be directly related to the services rendered and expenses incurred in closing the purchase of a vehicle.”  The Court also held, “As a result, a dealer may comply with the statute by setting a closing fee in an amount that is an average of the costs actually incurred in all closings of the prior year.”

This decision is of great importance because many South Carolinians could have been unfairly and arbitrarily charged a closing fee and should be compensated for their loss.

Contact Us Today!


It's free to speak with us about your case, and if you hire us, we don't get paid unless we win.

Awards & Associations

Our Locations

Jeffcoat Injury and Car Accident Lawyers

1333 Main St #510,
Columbia, SC 29201

(803) 373-1668

Jeffcoat Injury and Car Accident Lawyers

5465 Sunset Blvd Suite B,
Lexington, SC 29072

(803) 373-1302

Jeffcoat Injury and Car Accident Lawyers

161 Elliott St SE Suite B,
Orangeburg, SC 29115

(803) 373-7593

Jeffcoat Injury and Car Accident Lawyers

749-2 University Village Dr,
Blythewood, SC 29016

(803) 592-6553

! NOTICE ! No Legal Advice Intended. This website includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal issues or problems.

Files are primarily handled in our main office in Columbia.

Back To Top