Special Reports

CHICAGO (CBS 2) ― Used cars sold at auction can have hidden costs and hidden troubles. Now the CBS 2 Investigators have found the operators of a popular car auction house has apparently been violating the law for decades. As Pam Zekman reports, it's bidder beware.

The cars sparkle from a spray of water before they're driven past the bidders at City Auto Auction in Harvey. What the bidders don't know is that some of those cars had to be jumped just to get them started. How could they know, since at City Auto you're only allowed to look at the cars for one hour before the auction, and even then they're locked.

Auction victim Artie Hibbler said, "I wanted to start the car. I wanted to hear it run at least a little bit."

He should have had that chance according to court rulings in consumer fraud cases filed by the attorney general's office against other auction houses. In one case the judge said that potential bidders should be allowed to completely inspect the car. That includes looking under the hood and starting the motor to test the electrical and mechanical systems.

But that's not the case at City Auto.

"He told me that for their safety, they don't want no one in the cars," Hibbler said.

Hibbler bid $1,400 on a '97 Ford. After he put down the required non-refundable deposit of $500 he was told about other fees that jacked up the total cost to more than two thousand dollars. "I tried to back out of it, but they said all the sales were final," he said.

Hiobbler took the car and then got more bad news from a mechanic. "Twenty-five-hundred extra dollars just to get the car running. It's unfair," he said.

"I think they did a bait and switch," auction victim Wendy Nachtman said. Nachtman and others have a different complaint about City Auto. She says the '97 Cavalier she bid $1,100 for was not the one she got. She got a car with a cracked windshield, missing mirrors, and a broken headlight. She says she would have seen these things when they drove it out.

Nachtman has to climb in on the passenger side because the driver's side door is welded shut.

There's more. The door panel falls off when you open it, the windows don't open, and there's so many electrical and engine problems a mechanic told her the car's not worth fixing.

"It's not drivable," she said. "It's illegal to drive."

When she complained, company officials pointed to the contract she signed in which buyers agree they are taking a car "as is." She said, "But the public needs to be able to know what as is, is."

Adnan Abdeh is the current manager of City Auto and the owner's son. Waleed Shakir is the customer service manager. Both have owned other car auction companies that have been sued by the attorney general's office for consumer fraud, such as demanding non-refundable deposits before itemizing all the costs and selling cars that were not in working order.

Without admitting any guilt, both signed consent decrees promising not to engage in deceptive practices -- practices still going on at City Auto.

CBS 2's Pam Zekman confronted Shakir. "Mr. Shakir we have complaints from people who say they were ripped off by this business. Are you ripping people off?"

"I told you if you want an interview you have to write it in writing," he said. But he tossed away Zekman's written questions.

"People say they were victims of a bait and switch," Zekman persisted.

"I told you already what to do," Shakir said.

In 1995, a judge told Shakir he was prohibited from owning or working for a car auction like City Auto, where we saw him taking bids.

"You were banned by court order," Zekman said to Shakir. "Why are you in this business? Where is Mr. Abdeh?"

"I'm sorry you're not welcome, Ma'am," Shakir said. "Ma'am could you leave the parking lot? Could you leave or I will call the police for you."

Neither Shakir or Abdeh responded to even our written questions. But now as a result of our investigation the attorney general and the Secretary of State's office both have plenty of questions for them. We'll have more on that tomorrow night at ten.

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