Nothing illegal about not reporting to a credit agency

Unfortunately, there is nothing illegal about a buy here pay here company. In fact, they are quite common.
As for your court case, if you can not prove you made 48 payments and they can prove that you signed a contract saying you would make 48 payments, then of course they have a winable case.
The time constraints can easily be dismissed as they were unable to find you.
As for your new dealership making copies to send to the state, I really doubt that is what is happening. I think that perhaps the copies were made to show the lender that you did in fact have a financial commitment for 48 payments and that you have upheld that commitment but dealerships rarely turn one another in.

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