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Business / Auto Quality

Pang Da Group's notice declines claims on fraud contracts

(chinadaily.com.cn) Updated: 2013-01-18 14:31

Pang Da Automobile Trade Co Ltd denied the claims on Wednesday that it enticed car buyers into signing contracts for financial lease, and the cars sold failed to meet the national emission standard.

Pang Da Group indicated in the notice that it sued the vehicle purchasers because they did not repay the loans in accordance with the contracts for financial lease.

Some Pang Da car buyers said that Pang Da Group signed a large number of blank contracts with the vehicle purchasers in recent years, but the notice did not address this, Economic Information reported Friday.

The car buyers said they could not repay the loans as they failed to get a license plate from the vehicle administrative office, or could not operate the vehicle normally due to its poor quality.

The cars sold by Pang Da Group adhere with the National II Emission Standard, instead of the current National IV standard, which means that vehicle administrative offices never give license plates to Pang Da car owners, said Jia Baozhi, a car owner from Shanxi province in North China.

Pang Da Group enticed the purchasers into signing the contracts through the method of concealment. This kind of contract does not reflect the real intention of the purchasers and should be regarded as invalid. This is a legal issue that Pang Da Group cannot evade, said Tan Qiugui, professor at the center for procedural law at China University of Political Science and Law.

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