Kruse Auctions Trouble?

[Cobrabill]

NBC TV-12 Phoenix
Call 12 for Action
Kruse Auction
Reneges on Promise
By Dave Cherry
Call 12 for Action
7-23-09

This morning, Call 12 for Action has an update on a story we brought you last month about an Indiana auction company called Kruse International.

For years, Kruse International has brought its auctions here to Phoenix. After a classic car auction the company did this January, a viewer contacted us saying Kruse sold his car but didn't pay him. After we got involved Kruse promised they would pay-- but they didn't.

We're now concerned more Phoenix classic car buffs could be in harm's way, so action is needed. First, here’s what happened to our viewer.

"I want my car back."

Bob Sibilla is steaming mad at the Auburn Indiana based auction company called Kruse International. Bob says he consigned one of his classic cars with Kruse International for an Arizona-based auction back in January.

"It was a 1950 Chevy and they call it a "Gasser", because it was an old drag-race car."

The car sold for $7,000. Bob was perfectly clear on when he'd get his money from Kruse. "It would be in 30 days, according to the contract. When you go in there you sign all kinds of papers, you have to prove to them that you have clean title on the car."

30 days came and went and Bob did not get his money. He knew Kruse to be a well-known and established player in the auction field, so he was surprised at how they explained the delay.

"We have up to 90 days. I said where's that in the contract? They said it's an unwritten rule with dealers. He said, there could be trouble with the title, I said there's no trouble with the title, I just titled that car here, it's a clean title, there are no liens on it, no nothing."

Now several months have come and gone. Bob says he hasn't heard from Kruse. "If I really needed that money, I'd be in big trouble. Say I needed it for a house payment."

When you consign a car to any auction company, trust is involved. Bob feels he misplaced his trust in Kruse International and he's concerned others could lose a car just like he did. "I would say don't even put your car in any auction at this time, because you don't know what's going to happen."

We'd have to agree with Bob when it comes to Kruse International Auctions. Bob and I have talked to the Vice-President of Kruse several times, he's promised us both that Kruse would make things right and pay Bob and each time the company's failed to honor its promise. Bob has no car and he has no money.

The Arizona Department of Motor Vehicles has issued a "Cease and Desist" order against Kruse International. The company is no longer permitted to conduct auctions here because their license requires them to maintain a physical office in Arizona. The MVD says Kruse's Arizona office location is now closed.

How can you help? If Kruse re-opens an office in Arizona, and re-applies for a license, the Motor Vehicle Division says it would have no basis for denying that license. The only way the MVD could deny Kruse a new license is if it receives complaints from consumers who've had similar experiences as Bob.

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